To The Moon

Still pausing above the lower boundary

It was another day of neither here nor there market action on Thursday. The indices $DJIA(.DJI)$, $NASDAQ(.IXIC)$and $S&P 500(.SPX)$started off brightly and strongly and set off towards the sunshine confidently. However they all faded towards the end amidst very unrelenting high yields in the bond market. It seems rather clear that so long as the Feds keep up their hawkish agenda, gains will be limited. 

Technical wise, the broad market is still withinthe goalposts I put up, specifically 3640 belowand 3835 above. They are not very far off from the lower limits and therefore caution is probably wiser at this point of time. Breach that level and I believe 3345 and 3280 will beckon. 

On the bright side, the semiconductors had a better day on Thursday and managed to eke out gains although the way they petered out towards the end is rather worrying. Not surprising though considering the streak bond yields are having. 

The markets are not easy to read at the moment due to many uncertainties and I believe it is better to sit back and watch where they want to lead us rather than jump in front of them. I still believe we are shaping up towards a year end rally and am cautiously optimistic.

Stay safe 😊