In my opinion the market is trying to find a bottom. How far it will go down, Im not sure, but anything lower that 3450-ish, will take market to very oversold territory.
Everyone is waiting for Thursday’s CPI, depending on the result this can go either way:
1. Inflation is rising - this means FED will be rise rates by 0.75 in November, strong move downside, but then it to go to oversold territory and we might stay there few days before slow recovery starts. I dont believe the earning season takes market above 4000. More realisticaly 3900-3950.
2. Inflation is going down- rising rates start to do the job, FED might slow down next month but we’re not out of the woods yet. Economies already slowed down, we might see recovery on the markets and USD to cool off a little.
The only difference between 1 and 2 is when we start the recovery- this or next week.
If you look at the VIX, it is pretty high, over 30. On a brick of being overbought.
That makes me believe we can see some green candles in the next few weeks but after that I expect very red November.
I can be wrong, the markets are unpredictable so dont treat it as trading advice. Im not a professional trader but I’ve been following indices closely in the last few months. Always do your own analisys
Everyone is waiting for Thursday’s CPI, depending on the result this can go either way:
1. Inflation is rising - this means FED will be rise rates by 0.75 in November, strong move downside, but then it to go to oversold territory and we might stay there few days before slow recovery starts. I dont believe the earning season takes market above 4000. More realisticaly 3900-3950.
2. Inflation is going down- rising rates start to do the job, FED might slow down next month but we’re not out of the woods yet. Economies already slowed down, we might see recovery on the markets and USD to cool off a little.
The only difference between 1 and 2 is when we start the recovery- this or next week.
If you look at the VIX, it is pretty high, over 30. On a brick of being overbought.
That makes me believe we can see some green candles in the next few weeks but after that I expect very red November.
I can be wrong, the markets are unpredictable so dont treat it as trading advice. Im not a professional trader but I’ve been following indices closely in the last few months. Always do your own analisys