The US stock markets continue to struggle with investor sentiment hurt by several factors ranging from the ongoing situation in Ukraine, to surging inflationary pressures around the and policy tightening from the Fed. While Wall Street attempted a recovery after the minutes of the FOMC’s January meeting were released last night, the gains proved to be short-lived. Traders were happy to sell into that spike. Safe-haven gold is on the rise, as investors attempt to protect their purchasing powers from being eroded by inflation damaging the values of fiat currencies.
There’s thus little surprise to see the indices come under selling pressure again. As we warned earlier this week, the S&P 500 failed to reclaim its 200-day moving average yesterday and has consequently retreated further today.
Meanwhile, the technology-heavy and interest-rate-sensitive Nasdaq 100 has turned lower from where it should have:
Source: ThinkMarkets and TradingView.com
As per the chart, the shaded region was support and resistance in the past and this zone has now turned into resistance. A closing breaking below this region should keep the bears in control heading into the business end of the week.
