As promised, I wanted to provide an update on markets after this week’s events from Jerome Powell (FOMC) and Janet Yellen (Treasury Quarterly Refinancing).
This would give us some indication of how the Feds and US Treasury are responding to (a) recent weakness in stock markets, and (b) sticky US inflation.
I don’t usually do this, but let’s start with the price action.
And then we’ll move on to the fundamental discussion.
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Market Price action is terrible – suggesting short term caution
Generally speaking, market price action has not been pretty.
There has been a significant loss of momentum in key markets, and a lot of key support levels have been broken.
This would suggest some caution is warranted in the short term.
Bitcoin / Crypto frontruns traditional stock markets – and is signalling caution
I’ve shared in the past how Bitcoin / Crypto frontruns traditional markets by about 2 – 3 weeks this cycle.
For example in Oct 2023 Bitcoin bottomed before stocks – which allows us to use Bitcoin as an early warning for stocks / REITs.
The Bitcoin charts are not pretty.
2 weeks ago I shared that $57,000 – $59,000 is the key range I would be looking for.
That range has been hit this week.
The support has held for now though, so if this holds it would be a bullish sign.
But the fact is
