Hello Everyone,
Quick Notes: The day started off in a wild way: The cryto market was in total meltdown mode, which also transferred to the market as futures were strongly down pre open. We saw a big gap down, however the market indexes formed their intra day low over the first 30 min and closed well off the lows. The major indexes still closed down, however the Nasdaq 100 Big Tech actually managed to post a slight gain and staged one heck of a recovery.
As far as the market we've seen a nice correction now. Using the SPX as the market proxy today it once again found support at the the major support zone near the 4050 area and 50 day MA. For now we still have a lower high in place. Could a low be in place here? It's possible but price needs to hold these levels and take out some resistance areas. Should we probe lower the next support would be the uptrend line connecting the Nov low to the Mar lows.
As far as the sectors: all of them closed negative except for the technology and semiconductors.
Crazy action with Crytos' Bitcoin hitting a low in the 29,000, and Ethereum falling to a low of 2000 - all recovered off their morning lows. To me the easy trade was taking a shot buying that morning low, now however the easy trade is over and I think this area at minimum is due for a lot of whipsaw chop.
The US Dollar staged a nice recovery and gained 0.5%, this had a negative effect on most commodities with all of them closing strongly to the downside. Precious metals also reversed an early gain with gold closing basically flat, but silver and GDX closing down about 1.5%.
Today we saw the FOMC minutes released and one thing that spooked the market was some Fed talk about eventually having to reconsider their easy policies at some point. However let's be honest, the Fed is not even close to doing that at this point and the market is hopelessness addicted to the 'crack' low rates and endless liquidity.
Matt