ECB and Weak Manufacturing Ambush
Aa
Share
S&P 500 had trouble extending FOMC gains, and just when it looked that the 4,720 held as support, stocks were again rejected at 4,735, losing dozens of pts quickly – only to come back overnight. Well, the chief catalyst was ECB not meeting the Fed degree of dovishness in the least. Rotations continued just like I predicted yesterday in the morning – tech weakness was predictably there, and it was cyclicals and interest rate sensitive plays with Russell 2000 that drove the subsequent rebound.
For swing traders as well, this is a fair summary, but stocks may have to consolidate a bit longer than just a single day to get through 4,735 decisively. Disappointing Empire State manufacturing at -15 led to an initial bullish gap in ES that was however sold into, so better take off the intraday gains off the table (ES -5 pts, but more than made up with the NDX long bringing in 151 pts).
As always, more detailed commentary and levels follow in the chart section.
Keep enjoying the lively Twitter feed via keeping my tab open at all times (notifications on aren't enough) – combine with subscribing to my Youtube channel, and of course Telegram that always delivers my extra calls (head off to Twitter to talk to me there), but getting the key daily analytics right into your mailbox is the bedrock.
So, make sure you‘re signed up for the free newsletter and make use of both Twitter and Telegram - benefit and find out why I'm the most blocked market analyst and trader on Twitter.
Let‘s move right into the charts (all courtesy of www.stockcharts.com) – today‘s full scale article contains 4 of them, featuring S&P 500, credit markets, precious metals and oil.
Tired of seeing those red boxes instead of way more valuable information? Try the premium services based on what and how you trade.
Credit Markets
Bonds still have the risk-on posture, but I wouldn‘t rely on yields further declining to be a stock market driver higher like there is no tomorrow. Such an outcome needs half decent incoming data, which isn‘t what we got today.
Thank you for having read today‘s free analysis, which is a small part of my site‘s daily premium Monica's Trading Signals covering all the markets you're used to (stocks, bonds, gold, silver, miners, oil, copper, cryptos), and of the daily premium Monica's Stock Signals presenting stocks and bonds only. Both publications feature real-time trade calls and intraday updates. This is how you can join.
Go beyond the free Monica‘s Insider Club serving instant publishing notifications and other content useful for making your own trade moves.
Turn notifications on, and have my Twitter profile (tweets only) opened in a fresh tab so as not to miss a thing – such as extra intraday opportunities. Thanks for all your support that makes this great ride possible!
