Stocks Fall. More Downside To Come

Nov 10, 2021

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Shares fell yesterday; it was a take’em down Tuesday, lite. The fell 35 foundation factors, and the fell by round 70 bps. Later in the present day we are going to get the report and as a result of tomorrow, Thursday, is a financial institution vacation, which suggests the bond market is closed, although not the inventory market.

Flattening Curve

Yesterday’s information got here in as anticipated, and that despatched bond yields decrease. Yields are falling over the world, which suggests the strain and momentum on US yields can be decrease. The fell by 5 bps to shut at 1.44%, whereas the fell by 2% to 42 bps. That to 1%, and now it’s sitting on a key degree of assist, ensuing within the curve flattening right down to 80 bps.

It has destructive implications for international progress.

US10Y-US20Y Daily Chart

Threat Warning

In the meantime, we’re seeing an enormous breakdown in danger, with the cross now sitting on a vital assist at 83.15 after dropping an enormous 94 bps yesterday. If it breaks assist, which I feel it can, it can fall to round 82.05. One other vital warning sign for shares.

AUD/JPY 15-Min Chart

S&P 500

I’m searching for a high right here within the (through ), with a reversal again to 4,440 on the .

S&P 500 Emini Futures 1-Hr Chart

S&P 500 Emini Futures 1-Hr Chart

Tesla

Tesla (NASDAQ:) shares fell 12% yesterday and are simply above assist at $1,000. There’s a big hole that must be crammed at $909. Gaps are likely to get crammed most of the time, and I’d not be shocked to see that hole crammed.

Tesla Inc Daily Chart

PayPal

PayPal (NASDAQ:) fell by 10.5% yesteray and beneath that vital assist degree at $212. The inventory is momentarily oversold with an RSI of twenty-two.5. However typically, true bottoms aren’t fashioned till we see a cheaper price and the next low on the RSI. So PayPal could bounce, however I feel we are going to see even decrease costs.

PayPal Holdings Inc Daily Chart

PayPal Holdings Inc Every day Chart

Amazon

Amazon (NASDAQ:) continues to be flirting with this hole at $3,575, nonetheless has been in a position to break above resistance. I don’t see how Amazon can rally if the SPX turns decrease. However no matter, I’ve been improper earlier than. I nonetheless assume it heads to $3,300.

Amazon Inc Daily Chart

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