Risk is off again and the USD is pushing up

Holding on to Our S&P500 Signal, As the Reversal Continues

Posted Monday, September 12, 2022 by
Skerdian Meta • 1 min read

Stock markets completed the strongest bullish run during 2020 and 2021, as central banks and governments kept throwing money at the economy. That kept stocks running higher, but this year stock markets have been mostly bearish as central banks ended the stimulus programmes and started raising interest rates.

S&P500 retreated from above $4,800 to 3,640 points by the middle of June. In July we saw buyers come back, but the retreat resumed in August. Although, central banks are considering slowing down with rate hikes as the global economy weakens, which is actually improving the sentiment.

S&P500 H4 Chart – Moving above the 200 SMA

Stock markets opened with a bullish gap today

So, we decided to open a buy S&P500 signal during the retreat, which continued further. But last week buyers came back in again and the price has been reversing higher since then. Today stock markets opened with a bullish gap and S&P moved above the 200 SMA, which is a bullish signal.

A snapshot after the opening currently showed:

  • Dow industrial average up 112.30 points or 0.35% at 32264.02
  • S&P index up 21.19 points or 0.52% at 4088.54
  • NASDAQ index up 71.97 points or 0.59% at 12184.28

The small-cap Russell index is also higher. It is currently up 11.48 points or 0.61% at 1894.35

. In the US debt market, the yields are lower:

  • 2 year 3.531%, -3.9 basis points
  • 5 year 3.398%, -4.7 basis points
  • 10 year 3.285%, -3.6 basis points
  • 30 year 3.440%, -1.6 basis points

So, we are holding on to our S&P signal, as the price moves above $4,100. The trade is looking pretty good at the moment with today being the fourth day of gains.

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