Carlsquare weekly market letter
- We are still in the summer lull so anything can happen. Higher interest rates are weighing on the market, along with a weak outlook from China and Fitch pulling the trigger on the banking sector. The Fed’s Jackson Hole meeting on 24 August could see the next significant change in policy.
- Technically, the market is poised for another leg higher as it is oversold. However, yesterday the S&P 500 broke below its 50-day moving average, which puts much pressure on the bulls as the market is on the verge of breaking down. Keep an eye on Apple shares, as it may hold the key to the market’s overall direction!
- The graph below shows the S&P500 performance compared to the US 10-year Treasury yield.
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