Hello Everyone,
Market Observations:
Long Term: Bear Market, Intermediate Term: Downtrend, Short-Term: Downtrend
Market Comments
: The Fed raised the overnight rate by 0.75%, which was widely expected, and committed to their path of increases with a target range of 4.6 - 5% by 2023. The market closed down strongly for the day with both the SPX and Nasdaq losing -1.7%. There was an open gap magnet on the SPX from mid July and that was filled today. Open gaps are magnets for the SPX, and what's more there's an unfilled open gap still from mid June just off the yearly lows. The charts are ugly no way to sugarcoat it.
Bonds/Rates: The 10-Year yield was up strongly then made a sharp reversal, and TLT 20 year bonds made a sharp reversal late day and closed up. There is a weekly fall wedge pattern with MACD divergence that stands out. The Yield Curve went more inverted today because of the move lower in the 10-Year Yield.
Currencies
: The US Dollar closed up sharply today up 1%
Reversion-to-the-mean systems: SPY Stoch Short Rev 1st entry still active. New bear long 1st entry in SPY and 1/2 entry in ES/MES
KISS Trend Systems: KISS daily systems have been in cash since 8/26/22
have a great night!
Matt
