The game changed
|S&P 500 slid right after the opening bell, and good incoming data didn‘t save it. Entry to new quarter after window dressing got over? Yes, and the issue was also in semis and tech in general. Even financials declined 0.5% - and these were among the better performing sectors. Defensives with communications (and financials) propping up S&P 500 in the days ahead? I‘m answering this question in the premium part.
Iran‘s response was another strong factor in yesterday‘s session – 5,730s held twice, but the spiral of escalation seems to be about to continue. Usually, that had triggered safe haven demand for Treasuries and select real assets – this time around, I don‘t see Treasuries as getting too positively affected, and gold with silver charts are diverging from oil, especially since Iranian oil facilities have been listed as one retaliation target. Politically and militarily, I see Mideast situation as getting considerably worse rather than better in the days and weeks ahead.
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