Stocks Fall. More Downside To Come
Michael Kramer | Nov 10, 2021 01:30AM ET
Stocks fell yesterday; it was a take’em down Tuesday, lite. The S&P 500 fell 35 basis points, and the Qs fell by around 70 bps. Later today we will get the CPI report and initial jobless claims because tomorrow, Thursday, is a bank holiday, which means the bond market is closed, though not the stock market.h2 Flattening Curve/h2
Yesterday’s PPI data came in as expected, and that sent bond yields lower. Yields are falling over the world, which means the pressure and momentum on US yields will be lower. The 10-year fell by five bps to close at 1.44%, while the 2-year fell by 2% to 42 bps. That flattened the curve to 1%, and now it is sitting on a key level of support, resulting in the curve flattening down to 80 bps.
It has negative implications for global growth.
Meanwhile, we are seeing a massive breakdown in risk, with the AUDJPY cross now sitting on a critical support at 83.15 after dropping a massive 94 bps yesterday. If it breaks support, which I think it will, it will fall to around 82.05. Another significant warning signal for stocks.
I am looking for a top here in the S&P 500 (via SPY), with a reversal back to 4,440 on the S&P 500 futures.
Tesla (NASDAQ:TSLA) shares fell 12% yesterday and are just above support at $1,000. There is a huge gap that needs to be filled at $909. Gaps tend to get filled more often than not, and I would not be surprised to see that gap filled.
Get The News You Want
PayPal (NASDAQ:PYPL) fell by 10.5% yesteray and below that critical support level at $212. The stock is momentarily oversold with an RSI of 22.5. But generally, true bottoms aren’t formed until we see a lower price and a higher low on the RSI. So PayPal may bounce, but I think we will see even lower prices.
Amazon (NASDAQ:AMZN) is still flirting with this gap at $3,575, still has been able to break above resistance. I don’t see how Amazon can rally if the SPX turns lower. But whatever, I have been wrong before. I still think it heads to $3,300.
Original Post
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.