The end of last week could be considered crazy...
In the markets, Friday was an almost full retracement of Thursday's gains...
"Almost", because the markets still managed to hold the line.
And that could open up the potential for a double bottom from the June lows...
Remember that the fundamentals would not point in this perspective...Inflation with the latest US CPI above consensus expectations...
The speech pointing to a US recession...Europe...see world, why not...
The hawkish bias of the US Federal Reserve...to fight inflation...which has taken hold...
However, However, have we seen a sell-off in the markets...in stock funds...in individuals...?
That doesn't mean it won't happen...
Source FactSet
But, the feeling of "crash" of the previous weeks would be replaced more and more by an exhaustion of the bears...
Note also that small caps continue to hold up with a Russell 2000 remaining above the lows of June...$E-mini Russell 2000 - main 2212(RTYmain)$
Contextually, the gamma remains firmly negative, and we are approaching the October 2022 expiry...
Add to that, we enter the publications of results of the companies...$Netflix(NFLX)$ $Tesla Motors(TSLA)$
Expect more volatility in the markets...adapt your trading
For your information, please find below the SPX key levels: $S&P 500(.SPX)$
3600 would remain the key level, with 3700 in resistance.
Lower levels, let's retain 3500; 3400.
This is not buy/sell advice.
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Comments
Update level and comments to read
$S&P 500(.SPX)$ 3700 woulb be is an important strike at this OPEX, likely see a push pull scenario here.
Thanks for reading.
@Do_Trading
Thanks for reading