19.05.22 Macro Morning
Chris Becker | May 19, 2022 09:52
Well the bounceback is finished and then some with Wall Street collapsing overnight in its worst run in nearly two years, with the NASDAQ losing nearly 5% in a single session. Sell in May and go away anyone? This was all about inflation concerns as the latest UK, Euro and Canadian inflation prints spiked above expectations combined with some serious earnings downgrades due to the price pressures. The bond market reacted but not as violently with the 10 Year US Treasury yield firming back to the 2.9% level, with interest rate markets continue to price in nearly 2% of rate rises to come from the Fed by the end of the year. Meanwhile the USD regained its lost ground, with the Dollar Index up 0.5% as commodity currencies and other undollar assets swung lower again. Commodity prices all saw downside action as well, with WTI and Brent crude off by nearly 3% while gold bucked the trend with a scratch session to remain anchored just above the $1800USD per ounce level.
Bitcoin is still going nowhere, unable to get above the $30K level after cracking through the $25K level last week, deflating down to the $29K level as of this morning and looking very weak on the daily chart. Daily momentum remains oversold and price action is indicating a rollover is imminent:
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