Breaking the range

S&P 500 corrective move indeed ruled yesterday, but no important support was breached on a closing basis. While market breadth is nothing to write home about, and financials daily candle looks ugly, I don‘t see a sharp stock market downswing breaking through yesterday given support levels, as likely or imminent.

It was though only oil that took advantage of USD relief rally sputtering – and to a certain degree copper while precious metals remain in wait and see (vulnerable short-term) position. Bonds though favor a risk-on resolution, no matter the creeping in 5.50%+ or even 6% Fed funds rate chatter.

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Let‘s move right into the charts.

S&P 500 and Nasdaq outlook

The bulls continue having the benefit of the doubt, and will spend little time today defending from selling onslaught. The unemployment claims in and above expectations, for a change – illustrating the slowly darkening job market outlook (where even Powell refuses to consider Jan NFPs on face value in the fight against inflation, knowing full well about those seasonality adjustments), will play into Fed pivot bets and retreat in yields, all supporting stock buyers.