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Market crash all but guaranteed?
What’s up people.
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Ok, let’s get into this.
We're coming up on the close of one of the most volatile weeks we've seen in some time after CPI and FOMC data.
Just looking at the weekly candle it feels and looks extremely bearish.
Seems that the bulls tried to push and hold above 4k, but the bears came in to smash them right back down.When evaluating US Equities we always start with the macro economy, and work our way down.Regardless of the better than expected inflation numbers, there's nothing to celebrate about +7% inflation.
Still bearish, and still think we can push to new lows going into Q1 2023.For the second time this month S&P could not stay above the 200MA, and to me that is a sign we are still weak.I'll be looking for shorts on breaks below 3950 and algobuddy "bear" signals on all time frames.As much as I'd love to be a bull, the numbers are still not allowing us to be.
Let’s shift gears to crypto…
Looking at the Weekly Bitcoin chart.We've mapped out a key level that Bitcoin shattered down through with the FTX news, but has since failed to reclaim and break back through.FTX collapse aside though, we can see that this 18K level is where Bitcoin skyrocketed past in late 2020. Thanks to Uncle Sam's stimulus checks of course...Over the coming weeks, this 18K level will be a strong indicator if we'll see more pain ahead.Bitcoin wasn't able to hold the 18K level it blasted past this week. The 10-12K range seems to be calling Bitcoin's name at this point.Combine that with CPI , the FOMC/FED and Powell's stances, the bearish sentiment has no reason to go away.Inflation came in lower (despite still being at 7.1%), but as Powell stated, they'll be continuing to hike until their targeted 2% level is achieved.We'll look for nice trade setups on the way up or down. As you should be too.Eyes peeled out there.-TucciNomicsChief Overlord, AlgoBuddy