Market When Closed - Sunday 7 April 2024

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Is Neel Kashkari The Boss Of Wall Street?

The question is whether Thursday's dump was following the utterances of the Minneapolis Fed Head Neel Kashkari, or whether that was just the excuse used by bigs who were going to dump anyway. If the former, then Friday's rally ought to continue next week, because hot on the heels of the inflation-busting hawk talk came a jobs report indicating lower inflationary pressure from wage rates. But neither the close nor any intraday moment Friday saw the S&P500 or the Nasdaq over Thursday's highs, which rather suggests a dump was en route anyway, regional baronial edicts notwithstanding.

So with that in mind let’s check in on our usual charts - we cover the US 10-year yield, the S&P500 in three incarnations (SPY, ES, UPRO), Nasdaq, the Dow and the Russell ditto (unlevered ETF, futures and 3x leveraged ETFs in each case) - plus some sector-specific levered and unlevered ETFs. We do this daily for our paying members here, whether you are a member of the Inner Circle or our Market Insight membership tiers.

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Short- And Medium-Term Market Analysis

The charts below consider what-if the selloff isn't done; what's a reasonable line of support for the S&P, the Nasdaq, the Dow and the Russell? Speaking personally I am hedged 2:1 long:short both the S&P and Nasdaq, because I think the dominant direction remains up (hence 2 parts long) but I am concerned about continuing short-term weakness (hence the 1 part short, which I am to cash out for gains if they present themselves).