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The Grind Down Continues- 7 Sept, 2022

September 6, 2022 /

Market Outlook – Extreme readings on the new weekly highs minus lows; basing overnight near the 3880 region; prior support levels shown – AND YET – the formations still suggests that bounces will be selling zones as we have failed to hold the recent lows on the fade of each bounce. WHEN THE BOUNCES PULLBACK TO HIGHER LOWS, we will be ready to move in the opposite direction. STOP TRYING TO PICK A BOTTOM. Lots of Fed speakers today.

This shortened week

Yesterday’s ISM was stronger than expected – this caused the market to spike before a fade, continuing the move down from the side up on Friday. Services are in much hotter demand than in the COVID event.

IPOs at new lows- a sign that there is less liquidity in the market than in times past.

The daily chart for the ES_F shows downward continuation in the trend – bounces are the selling zones

Another potential bounce zone – but weight is heavy and we need to be conscious of selling pressure
The traders have broken through the support edge here

The chart to watch is the $DXY – as long as it keeps heading higher, we are likely to see weakness.

DXY chart

The WTI chart continues to fade -but again dropping into support levels. Bounces are still selling regions as the charts are in backwardation still.

CL_F

Some charts of interest from the Twittersphere

OPEC+ has also said the their products will be available at a premium to the US and at a discount to the EU
Labor market data

Current drought situation in Europe