More Short-term pain ahead for stocks, here's why:
- The “inflation shock” is worsening, the “rates shock” is just beginning, and the “recession shock” is coming. We are experiencing the start of a global recession. Rising inflation, interest rates, supply shortages, war & a pandemic are all combining to create a perfect storm.
- Markets are also down because many hedge funds & money managers are being forced to sell in order to meet margin requirements
- Investor sentiment has been affect by (1) Inflation fears, (2) worries about big interest rate hikes from the Federal Reserve and (3) fears about a possible economic slowdown (4) Russia’s war in Ukraine is ongoing, which could fuel inflation, supply chain issues, oil price fluctuations and contribute to an overall sense of unrest, (5) Slowed growth in China and concerns about the impact of Covid outbreaks there are contributing to anxieties
- Exponential Moving Average is bearish for the 5, 13, 20 and 50 day. MACD is bearish. RSI is bearish. Three Day Displaced Moving Average is bearish. 38.2% Fibonacci is bearish. Stochastic is bearish.
- Charts have a bunch of bearish indicators: Stochastic Sell Signal, Shooting Star Candlestick, MACD Bearish Signal Line Cross, Death Cross
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