Below the Hard Deck
With the Nasdaq crashing through the 13k level and now down nearly 28% on the year, we have to stay mindful of the bigger picture. It seems as if many investors have sold into these new lows and have followed hedge funds in a mass exodus. This chart will obviously show the 4wk rtn in a big catch down drop and maybe activity flows may start to rebound a bit, but its obvious net flows have been negative here for quite some time:
With this let’s look at the Nasdaq futures with a clear pummeling below the 12889 and now 11692 becomes the focus, with the Nasdaq continuing to lose momentum:
Amazon isn’t helping, but then again the 0.786 long term technical level is close:
2083 is a chunky 48% decline and in line with historical reversal key buy areas. So there is some hope for equities and the longer term value picture looks far better now than it did with Amazon at 3700. So with that said we would suspect large fast money to start stepping in here, even though the markets are pricing in a pretty nasty recession right now.
The SP500 has the 21% drop zone at the .382 3802 area and an area that would seem to provide key technical support:
Bitcoin is also nearing a key inflection point, and one whereby we have felt would be a massive buying opportunity for whales looking to scale back in, 28605 is massive and sits at the bottom of our projection profile for 2022:
Lets look at today’s settles where the bond market took the equity losses as a safe haven with a much steeper US Yield Curve:
Till next time…
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