In 2022, persistent inflation has been the key driver for the drawdown in the U.S. financial markets. While the 2020 short-lived bear market resulted from the COVID-19 outbreak, the current market drawdown has been primarily driven by the Fed's strategy in fighting inflation. In their attempt to sub...
For the past few weeks, the bears and bulls have been fighting it right near the 3998 resistance area. The bears have been firmly in control for most of the year with any upside movement from the bulls being short-lived. The bears now are simply in hibernation. As we left discussion in our last b...
Something interesting happened in the bond markets this week.
There is a well-known mantra in wall street that states "Don't fight the Feds." Every hawkish policy decision the Fed has deployed this year has seen rates go higher while long-duration bonds move lower. This week, the bond market calle...
After months of declining numbers, the market showed signs of positivity over the last two weeks. Are we set to see a new bull rally? Let’s set the stage.
A new rally has been underway for the past two weeks with all major market indices posting positive weekly gains. The S&P 500 showed two consecu...
By now, we know about the drastic shift in the market. But are we on the precipice of another change, but this time going back up?
A little backstory. With its all-time high set in early January of 2022, the S&P 500 has fallen considerably on the year - 33% as of September 30, to be exact. Inflatio...
As it now sits, this bear market has cleared out all the gains from 2021. And this Friday, all major indices tested their June lows with a small bounce going into the close. The financial markets have been on the downside for most of the year with recent rallies lasting just a day and then selling...
By mid-August, most U.S equity indices were looking at +4% gains or more. SPY was up +4.1% and investor sentiment was looking at turning greedy for the first time in months. However, as stated in our last blog on 8/27/2022, we said "With our algorithms issuing a weekly sell signal on the major ind...
Markets have been in free fall since hitting resistance in mid-August. The rally off of the June low setback in 6/23 helped propel markets right up to the 4300 region. And as we mentioned a few weeks ago in our last blog, we were expecting a pullback. FOMO kicked in gear near the tail end of the ...
What a difference a few weeks have made since the last blog on 7/16/22. Up to that point, the S&P500 was down more than 20% and the economy was looking into the barrel of a recession. However, from a technical perspective, we mentioned that there were strong signs that the market had the potential...
During the onset of the COVID pandemic in February 2020, markets all over the world took a dramatic nose dive. The crash lasted all but a month and markets started their ascent into all-time highs for the next 2 years. The policy at the time was if the economy started wavering, the Fed and Central...
