• 741 days Will The ECB Continue To Hike Rates?
  • 742 days Forbes: Aramco Remains Largest Company In The Middle East
  • 743 days Caltech Scientists Succesfully Beam Back Solar Power From Space
  • 1,143 days Could Crypto Overtake Traditional Investment?
  • 1,148 days Americans Still Quitting Jobs At Record Pace
  • 1,150 days FinTech Startups Tapping VC Money for ‘Immigrant Banking’
  • 1,153 days Is The Dollar Too Strong?
  • 1,153 days Big Tech Disappoints Investors on Earnings Calls
  • 1,154 days Fear And Celebration On Twitter as Musk Takes The Reins
  • 1,156 days China Is Quietly Trying To Distance Itself From Russia
  • 1,156 days Tech and Internet Giants’ Earnings In Focus After Netflix’s Stinker
  • 1,160 days Crypto Investors Won Big In 2021
  • 1,160 days The ‘Metaverse’ Economy Could be Worth $13 Trillion By 2030
  • 1,161 days Food Prices Are Skyrocketing As Putin’s War Persists
  • 1,163 days Pentagon Resignations Illustrate Our ‘Commercial’ Defense Dilemma
  • 1,164 days US Banks Shrug off Nearly $15 Billion In Russian Write-Offs
  • 1,167 days Cannabis Stocks in Holding Pattern Despite Positive Momentum
  • 1,168 days Is Musk A Bastion Of Free Speech Or Will His Absolutist Stance Backfire?
  • 1,168 days Two ETFs That Could Hedge Against Extreme Market Volatility
  • 1,170 days Are NFTs About To Take Over Gaming?
Billionaires Are Pushing Art To New Limits

Billionaires Are Pushing Art To New Limits

Welcome to Art Basel: The…

What's Behind The Global EV Sales Slowdown?

What's Behind The Global EV Sales Slowdown?

An economic slowdown in many…

  1. Home
  2. Markets
  3. Other

The State of the Trend

We've mentioned several times that putting the infinity of QE in doubt will make it harder and harder for the FED to keep all the plates spinning in the air. The true test of that assumption will come in the next several weeks. So far, as we concluded in our last article, the markets have been closely following their seasonal patterns. That was confirmed one more time as all the major indices declined sharply into the projected weakest summer time frame:

SPY Chart

The question now, however, is whether they will continue to do so and trade more or less in a trading range until the end of Summer, or continue their slide on fears that the FED will start tapering QE soon, that China liquidity is drying, and its economy is slowing down, etc.

Luckily, there's not much guess work involved. If the bulls manage to pull and keep the SPX above or close to the 2007 high, then chances are that the seasonal pattern is prevailing. Otherwise, a decline similar to previous declines from the top of the weekly channel points to support levels at 1566, 1536, 1466 and 1386:

S&P500 Weekly Chart
Larger Image

 

Back to homepage

Leave a comment

Leave a comment