Friday, July 28, 2023

SPX, NYA, COMPQ, BKX, Oil: Oil's Well That Ends Well

On Wednesday, the Fed raised rates another .25%, giving us the highest interest rates in 22 years, but leading pundits to speculate that the Fed is done raising rates and will pause in September.  The market responded to the announcement like an electrocuted giraffe, lunging lower, then higher, then lower again on Thursday.

Powell, on the other hand, was reluctant to commit one way or the other, preferring to wait for the next two months of data.  And there's at least a chance that Powell might be onto something.  It's worth noting that oil was stuck in a potential basing pattern for the last couple months, at the lowest levels it's seen in the past year and a half:

NYA encountered resistance yesterday at the black trend line, which is bulls' next obvious hurdle:

BKX reached its "90ish" target, now we'll see if it can break through or not:

Still watching to see how COMPQ reacts to this back-test:

And still watching to see how SPX reacts to this 36-year-old overhead trend line:

That's about all I've got for today.  Trade safe.

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