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Inflation anxiety continues to rattle the market as stocks sold off on Wall Street with all three major U.S. indices closing in the red. Leading the way was the Nasdaq Composite Index, down 1.15%, falling below its correction level of 14,451.69, triggering fear of extended selloffs as the market continues to grapple with worrisome inflation signals and levels. An uptick on Treasury Yields also added to the pressure that some fear is a preview of the new standard. The Federal Open Market Committee meeting is set to take place next week with the Fed Chair meeting with the press on Wednesday. It is widely expected interest rates will be adjusted this year, the number of adjustments has yet to be determined.
The $VIX is up near the 24-level and the $QQQ short term is overbought and will most likely retest recent highs or approach 200 DMA. Omicron virus, the fear of inflation, and next week’s Fed meeting can impact the next move in the market. We are watching the vital support levels in the SPY, which are presently at $450 and then $440 and we expect the market to continue to trade sideways into the first quarter of 2022. Globally, European markets closed in the green while Asian markets finished with mixed results. We encourage all market commentary readers to maintain clearly defined stop levels for all positions. For reference, the SPY Seasonal Chart is shown below:
Using the “^GSPC” symbol to analyze the S&P 500 our 10-day prediction window shows a near-term mixed outlook. Prediction data is uploaded after the market closes at 6 p.m. CST. Today’s data is based on market signals from the previous trading session.
The symbol is trading at $23.37 with a vector of -0.34% at the time of publication.
10-Day Prediction data is uploaded after the market close at 6 p.m., CST. Today’s data is based on market signals from the previous trading session.
Note: The Vector column calculates the change of the Forecasted Average Price for the next trading session relative to the average of actual prices for the last trading session. The column shows the expected average price movement “Up or Down”, in percent. Trend traders should trade along the predicted direction of the Vector. The higher the value of the Vector the higher its momentum.
*Please note: At the time of publication Vlad Karpel does not have a position in the featured symbol, slv. Our featured symbol is part of your free subscription service. It is not included in any paid Tradespoon subscription service. Vlad Karpel only trades his money in paid subscription services. If you are a paid subscriber, please review your Premium Member Picks, ActiveTrader, or MonthlyTrader recommendations. If you are interested in receiving Vlad’s picks, please click here.
West Texas Intermediate for Crude Oil delivery (CL.1) is priced at $86.17 per barrel, up 0.87% at the time of publication.
Looking at USO, a crude oil tracker, our 10-day prediction model shows mixed signals. The fund is trading at $61.05 at the time of publication. Prediction data is uploaded after the market close at 6 p.m., CST. Today’s data is based on market signals from the previous trading session.
The price for the Gold Continuous Contract (GC00) is up 1.57% at $1840.80 at the time of publication.
Using SPDR GOLD TRUST (GLD) as a tracker in our Stock Forecast Tool, the 10-day prediction window shows mixed signals. The gold proxy is trading at $172.08 at the time of publication. Vector signals show +0.23% for today. Prediction data is uploaded after the market close at 6 p.m., CST. Today’s data is based on market signals from the previous trading session.
The yield on the 10-year Treasury note is down, at 1.869% at the time of publication.
The yield on the 30-year Treasury note is down, at 2.179% at the time of publication.
Using the iShares 20+ Year Treasury Bond ETF (TLT) as a proxy for bond prices in our Stock Forecast Tool, we see mixed signals in our 10-day prediction window. Prediction data is uploaded after the market close at 6 p.m., CST. Today’s data is based on market signals from the previous trading session.
The CBOE Volatility Index (^VIX) is $23.85 at the time of publication, and our 10-day prediction window shows mixed signals. Prediction data is uploaded after the market close at 6 p.m., CST. Today’s data is based on market signals from the previous trading session.
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