SP500 Jitters

The SP500 has slid downwards for the 4th day in a row begging the big question… Did we see the top?

Economists are split, with some suggesting this is simply a healthy pullback amongst a bigger picture bull market. But others are more skeptical. The Magnificent 7 (Apple, Microsoft, Amazon, Alphabet (Google’s parent company), Meta (formerly Facebook), Nvidia, and Tesla) is not looking so magnificent presently, the US500 has slid below its psychological ceiling of 6000 (currently sitting at 5963, geopolitical tension is high, unemployment is rising and the US has a general sense of unease.

But interest rates are coming down. 

As we’ve talked to before, while interest rates easing is welcome relief for many – it usually coincides with a bigger economic problem. With the FED and the RBA now looking towards monetary easing by cutting rates, if the sharemarkets continue to fall and unemployment continues to rise we’ll surely see the next stage of fiscal stimulus being prepared. Monetary easing is not a sign of a healthy economy, it’s generally a sign of the complete opposite.

Enjoy today’s charts.

Gold daily chart, with 200MDA

Silver daily chart, with 200MDA

US500, with 200MDA

ASX200, with 200MDA