Major Market Decline Ahead? Nick Santiago 8-16-23 #517

Daily Market Wisdom with Nick Santiago

1.Yesterday the S&P 500 Index closed below the 50-day moving average. This is the first time this has happened since March.
Today, the markets are trying to bounce and we shall see if the S&P 500 index can climb back above its 50-day moving average. There are lots of money managers that will not buy stock when the S&P 500 trades below this key moving average.


2. Options expiration for August is this Friday. Expect more whipsaw into the end of the week. This is a time when we see lots of institutional game playing.


3. Bond yields have been strong lately and that is starting to spook markets. The highly followed 10-year note yield is now at 4.21%. The important 2-year note yield is 4.94%. If that 2-year starts to trade above 5% it is going to have the markets getting worried that the Fed may never cut rates again.


4. Gold is flat today. Lately it has been weak and moving lower as the US Dollar has been strengthening. The US Dollar Index (DXY) should be into some resistance around the 103.00 area.


Silver is slightly in positive territory today. This looks to be trading into some short term support right now. I'll be watching the pattern closely for clues.


5. Bitcoin is slightly lower today. nothing has really changed over the past few weeks. The daily chart is choppy and sloppy, but the weekly chart is still constructive. I just don't like that the chart is really not making a move higher yet. The weekly pattern can take some extra time, but this is sometimes how it is.