Is stagflation taking hold? | Investing.com
After Wednesday’s Fed, the stock market remained in a volatile state.
The US Dollar — Invesco DB US Dollar Index Bullish Fund (NYSE 🙂 not only strengthened, but broke through the resistance of its 200-day moving average at 24.69, confirming a phase of accumulation.
Additionally, the iShares 20+ Year Treasury Bond ETF (NASDAQ 🙂 ran with it, causing investors to fear that the market was slowing down.
However, the Invesco QQQ Trust (NASDAQ 🙂 created an indoor daily chart template which was a consolidation / pivot chart template.
Meanwhile, the other major indices including the SPDR® Dow Jones Industrial Average ETF Trust (NYSE :), the iShares Russell 2000 ETF (NYSE 🙂 and the SPDR® S&P 500 (NYSE 🙂 were sold all Friday Friday. day.
Of the 4 indices, only the QQQ held a bullish phase above its 50-day moving average.
Come Monday, if SPY and IWM have a second close below their 50-DMA, they will confirm a warning phase change.
This shows potential weakness if only the technology-heavy QQQ index holds up when the rest of the indices are down. Additionally, the economy could also shift into something Mish has been talking about for a long time now. Stagflation.
Stagflation refers to an economy that simultaneously experiences rising inflation and stagnating economic output.
For now, we plan to continue monitoring QQQs for further divergence from other indices, as well as commodities, such as precious metals and food, which are potential hedges against a period of inflation. .
- S&P 500 (SPY) Will confirm the cautious phase with a second close below the DMA 50 at 417.33.
- Russell 2000 (IWM) I broke the 50-DMA at 224.23.
- Dow (DIA) Without close support, DIA should hold and come back above 335.20.
- NASDAQ (QQQ) 342.80 pivot zone.
- (Regional banks) 63.38 next support zone.
- (Semiconductors) 244.94 50-DMA.
- (Transport) Need to find support.
- (Biotechnology) 154 support.
- (Retail) Watch for the second close below the 50-DMA at 91.80.
- Volatility index () Held on the 10-DMA. 36.18 next level of resistance.
- Unwanted bonds () Support for 108.94.
- (Utilities) 63.15 support.
- (Silver) 23.93 pivot.
- (Small Cap Growth ETF) 278.27 must hold.
- (US Gas Fund) Sitting in the pivot support zone.
- (IShares treasury over 20 years) 34.68 pivot.
- (Dollar) Accumulation phase confirmed with a second close on 91.51 on 200-DMA.
- (Lithium) 66.17 support.
- (Oil and gas exploration) Must contain an area of 90.51.
- (Agriculture) Interior day.
- (Gold Trust) Monitor background patterns.
Fusion media or anyone involved with Fusion Media will accept no responsibility for any loss or damage resulting from reliance on any information, including data, quotes, graphics and buy / sell signals contained in this website. Please be fully informed about the risks and costs associated with trading in the financial markets, it is one of the riskiest forms of investing possible.