What is happening in the market?
The market continues to be in a downtrend and is officially a bear market. It is down more than 20% from its highs. The market has been rocked by high inflation, FOMC rate hikes, CPI reports, and the Ukraine war, among other things.
Is there relief in sight?
One of the few positive insights stated in the FOMC minutes is that if the interest rate hikes work properly, inflation will peak at 5% in 3 months' time and continue sharply lower after that. The fed is being aggressive to combat high inflation and hopefully, relief will come sooner than later.
What does that mean for the market?
The market is still showing a lot of weakness but might find some temporary relief from a technical point of view. It remains to be seen how investors will react.
Where can we see the market showing strong support?
Looking at previous trading history we can see that the $360 price level was previous resistance which could now be an important level of support. The market might find some temporary consolidation at that level.
(Video update and Watchlist Breakdown in link below)
by Jose Navarro on June 21, 2022
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