S&P 500 Experiences A Perfect Liquidity Storm

Published on

S&P 500 decline led by tech met a first hesitant, then more resolute, intraday rebound led by tech retracing prior decline that XLI, XLB and XLE were unable to counter. Thanks to weighting as the share of Top 7 stocks had grown considerably with this bear market rally, these rotations have been insufficient in lifting up the index.

And today isn‘t shaping up to be much better – after breaking my key 4,403, the bears have 4,385 followed by 4,360 in sight. Notably, this is happening when Treasury is sucking liquidity from the market place (that money to buy fresh debt issuance has to come from somewhere, and we can be debating the transmission mechanism strength and accounting) and the Fed is still shrinking its balance sheet. As yet another tightening sign, BoE just raised…

Today‘s unemployment claims are likely to reiterate the hawkish Fed message ultimately, as in that the central bank still has room to tighten – and more of the realization that it would do that, which neither 3m nor 6m yield reflect totally.

Keep enjoying the lively Twitter feed via keeping my tab open at all times (notifications on aren’t enough) – combine with Telegram that always delivers my extra intraday 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.

S&P 500 and Nasdaq Outlook

S&P 500

4,448 remains elusive, but breaking 4,415 would bring that target within the realm of possibilities latest tomorrow. Even though unemployment claims came largely in line with expectations, the little rip being generated, is likely to be sold into during the regular session. Again, tech relative resiliency during the session would be the deciding element – and Nasdaq would lag behind value and cyclicals relatively speaking (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

While at my site, you can subscribe to the free Monica‘s Insider Club for 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!

Thank you,

Monica Kingsley

Stock Trading Signals

Gold Trading Signals

Oil Trading Signals

Copper Trading Signals

Bitcoin Trading Signals


[email protected]

All essays, research and information represent analyses and opinions of Monica Kingsley that are based on available and latest data. Despite careful research and best efforts, it may prove wrong and be subject to change with or without notice.

Monica Kingsley does not guarantee the accuracy or thoroughness of the data or information reported. Her content serves educational purposes and should not be relied upon as advice or construed as providing recommendations of any kind.

Futures, stocks and options are financial instruments not suitable for every investor. Please be advised that you invest at your own risk. Monica Kingsley is not a Registered Securities Advisor. By reading her writings, you agree that she will not be held responsible or liable for any decisions you make.

Investing, trading and speculating in financial markets may involve high risk of loss. Monica Kingsley may have a short or long position in any securities, including those mentioned in her writings, and may make additional purchases and/or sales of those securities without notice.