9/17/2021
Stocks are down -0.58% this morning after coming down to test a significant level of support once again. While stocks fall, the dollar rises in the anticipation of sooner-than-expected tapering by the Fed along with a hike in interest rates starting in 2022.
Our outlook
Other than September being one of the worst months for stocks, I think that we could be looking at an increasing investor uncertainty in the markets. Stocks have had a wonderful year for the most part, and they could definitely keep rising. But, it's important that we keep an eye out for these corrections that happen once in a while; and this 50 DMA indicator could be what sparks a sell off.
Trade Setups
SPX500
SPX500 came all the way back down to its 50 DMA after what looked like a promising bounce on the 1D chart. This leads me to believe there is an overall weakness in the stock market right now, and that we might see another leg down during this month. I think clean support could be at $4400 if stocks were to fall that far down.
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