Market Notes – May 9/22
Global markets got hit hard today with investors refocusing on the Ukraine war, a global energy shock and the risk asthe Fed tries to fight the supply-driven inflation. “I’ve been in the markets for 25 years and I’ve never seen anything like this,” said Danielle DiMartino Booth, CEO and chief strategist for Quill Intelligence, a Wall Street and Federal Reserve research firm. “It’s violent not just volatile.”
In the weekend edition of the Trend Letter we showed this updated chart, highlighting what a correction vs a bear market would look like. A move down to the 3800 level would be a decline of ~20% from the December high, signalling a correction. We would expect a relief rally from that level. If we then re-test that level, a bear market would likely take the S&P down to the 2730 level which would be a 50% retracement of the rally from 2009 to the recent high in December.
The tech heavy Nasdaq was down a whopping 4.29% on Monday. Now down ~28% so far this year!
The Canadian TSX was down 3.07%
Silver has really struggled recently, and dropped another 2.46% today. Based on RSI (bottom of chart), silver is now oversold.
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Stay tuned!