Friday‘s premarket rebound continued not too long after PCE reading, VIX attempted to reach European morning highs, and the market rolled over for two hours, nipping an oversold bounce (that would have coincided with daily defence of an important level in the percentage of stocks trading above their 20-day moving averages) in the bud. Not even a daily respite following the oil strategic reserve announcement and statements about the war ending soon from early in the week – instead, heavy derisking going into the weekend combined with USDX clearing the 100 resistance.
This week also marks an important development on the S&P 500 weekly chart, more from credit markets, and tellingly also gold being unable to hold ground in such flight to safety as oil and VIX keep their grind. Nasdaq looked acted stronger into the reversal, but that also gave way, no matter SMH and IGV price action on the hourly early on.
Where is that „off-ramp“ allowing markets to catch breath for a while? Could it be the Iranian FM Sat statement about what shipping the Strait is open to? Dollar is clear about the positioning.
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