1. The stock market is under pressure again this morning. The S&P 500 is now testing its 100-week moving average and the psychological 4000 level is in sight. This is a very oversold market right now with a lot of bearish sentiment, but that doesn't seem to matter right now. If there is one word of advice. markets do not fall in a straight line.  There will be bounces. 

At this time, inflation in food and energy is hurting the US consumer. Plus, if you add in the endless geopolitical events it is really weighing on the markets. 

2. Gold is under pressure again today. This dip comes as yields on the 10-year note reached 3.2%0. The US Dollar Index is also at 4 year highs. The next major support level for gold futures is around 1790. Silver may test $250.

3. Bitcoin is also falling today. We warned a couple of weeks ago that it was hanging on by a shoestring and if it traded sideways a little more it would form a bearish pattern. Well, that is exactly what happened. Bitcoin has daily chart support at 30,000 and then around the 27,000 level.

1. Markets are basically flat today to start the week. Believe it or not, that is a positive after the Friday bloodbath decline that we saw late last week. Often if there is a big Friday decline the following Monday could be a panic. That is not the case today, at least not yet. 

2. Yields on the 10-year note are at new highs today. They are currently at 2.979% testing that psychological 3% level. Remember, there is a highly anticipated FOMC meeting starting tomorrow and it concludes on Wednesday. The Fed is expected to raise rates by 50 basis points. 

3. Gold is getting slammed today. While it's a bit oversold on the daily chart it is signaling a further decline down to the 1790 area. remember, there will be bounces here, nothing falls in a straight line.  

4. Bitcoin is holding on by a shoestring. The popular crypto asset remains above the 38,500 area. The longer bases or consolidates this level the more likely it forms a bearish pattern. At the moment, it is still holding, so it lives to fight another day.

1. Markets just can't get any follow through after a rally session. Monday was a strong rally only to be met with selling on Tuesday and Wednesday. Yesterday, markets surged only to be met with selling pressure today. 

2. Last night, Apple (AAPL) and Amazon (AMZN) both reported earnings and they are both trading lower today. Amazon is obviously the big lower falling by 13% to $2500/share. That was a terrible reaction to earnings for this giant. Apple is down about 2%, but it did have a big rally yesterday. Either way, this is not a great earnings season so far for the mega-cap tech stocks. 

3. The Fed is next week and that is what everyone is now waiting on. They are expected to raise the fed funds rate by 50 basis points. That is factored in, but the verbiage could move markets. 

4. Gold is bouncing today off of daily chart support.

5. Bitcoin is falling a little. It is now testing that 39,000 level again.

Will April Market Showers Bring May Market Flowers — Nick Santiago 4-27-22 #385
1. Market volatility is very high right now. This past Monday the major indexes staged a decent rally on volume, but yesterday the move was eclipsed as markets went back down. There is a lot of fear out here now. 

Obviously, geopolitical events are not going away anytime soon. The next Fed meeting is next week and many investors are running for the hills ahead of that meeting. They are expected to raise the fed funds rate by 50 basis points. Then you have earnings season in full gear and there have been some major blow ups out there. It would be an understatement to say caution should be used right now. 

2. The U.S. Dollar Index (DXY) is now trading at its March 2020 high at $103.00. The US Dollar Index has seen capital flows since the start of the year. Sometimes the best house on a bad block does the trick. 

3. Gold is retreating again. Gold is now testing its lower range on the daily chart. 

4. Bitcoin is still trading around the 38,000 level, but there is really nothing great on that chart right now. As long as it holds here it can still live to fight another day, but if it consolidates this level it will give a sell signal soon.

1. Markets Under Pressure.
 Last week, the market stock indexes staged a sharp downturn on Thursday after Fed Chairman Jay Powell reiterated his hawkish stance. He basically said that the central bank was looking to raise by 50 basis points in early May. He also said that they would front load rate hikes to fight inflation. This caused a major downside reversal and the major indexes have been down ever since. Blood bath decline of epic proportions.

2. China lockdowns are also hurting the commodity sectors such as oil, base metals and even the precious metals. All of these groups were overbought on the larger time frames so a pullback or even a correction is not unusual at this stage of the game. The big question is whether this is signaling a real global slowdown? That is a really big problem for markets. 

3. Twitter backs down and will accept Musk’s offer and demands.

4. Gold/Silver are down.

1. Bond yields are the talk of the town right now. The 10-year US Treasury Note yield hit 2.86% this morning. While everyone is panicking about higher rates the yield curve has steepened and I think that is helpful for markets especially banks. This is a big difference when yields inverted about a week ago.

2. Natural gas continues to be the strongest commodity performer. This morning, natural gas futures are up another 6% to $7.73. This is certainly overbought and extended now, but as long as the Russia / Ukraine war continues this can remain elevated. The same case can be made for most other commodities as well. 

3. Last week markets got beaten up pretty badly. It was options expiration for April and the market was coming off of the big March rally. Now this week should be a time when they rebound a little as a lot of the moves last week could have been options ex related. 

4. Earnings season is underway this week. Lots of big companies will report this week. Buckle up, this could get bumpy.  

5. Twitter story continues to unfold. Chart still looks good.

1. This Thursday is options expiration for the month of April. Remember, the markets are closed on Friday this week for the Good Friday holiday. Markets have been very choppy and volatile this week and that can continue into tomorrow. It should be noted, a lot of this week's action is very often options related. As I always say, this is a week of institutional game playing. 

2. Earnings season kicked off today. JP Morgan Chase ($JPM), Blackrock ($BLK), & Delta ($DAL) were the big names that reported numbers today. Delta (DAL) is doing well while JP Morgan Chase is falling by nearly 3%. As a trader, it is important to check for earnings before entering a new trade. I do not hold stocks into earnings as the reactions are often unpredictable. 

3. Gold is holding up again. This is being helped by the Russian / Ukraine war. Gold is the ultimate fear trade play. 

4. Bitcoin is up a little today recapturing the $40,000 level. Either way, the chart still looks a bit weak, but it has been defended for now.

1. Markets rebounding. Dow and S&P 500 are up. Nasdaq is down. So far so good. As long as it ends green.

2. How high can feds funds rate go. The quant says 1%. The dollar has been making new highs. Europe is in horrible shape. The FF rate should follow the 2 year treasury rate. We are looking at a market that is hooked on QE and money printing. Money has nowhere else to go. The DXY hit 100 and is now at resistance. Euro chart looks horrible.

3. While the dollar is going higher, gold and commodities are holding prices. Will commodities control financials in the new paradigm. This proves the need for charts.

4. Implosion of the media is well underway. Stelter shows that everything is a narrative. The world is playing out to the 1984 script. Don’t let it happen. This is where we are at this stage of society. The consequences of every act are included in every act.

5. Inflation is all over and was well underway before the war began. Still lots of liquidity in the system.

6. We are being primed for a food shortage. It can be resolved quickly. Oil could be much cheaper if the market was allowed to work.

7. We are at a very pivotal time. Recovery is happening due to the money flow from Europe. War going on and a separation between East and West.

1. Markets are retreating again this morning. Everything is under pressure except energy and consumer goods stocks. Yesterday, Fed Governor Brainard said the Fed will look to reduce its balance sheet and raise rates more aggressively. This sent the markets down right after the news was released. Either way, I'm not really that bearish here. I think some industry groups needed to pull in and that is happening now. It's simply a stock pickers market now.

2. The Russia/Ukraine war does not seem to have any end in sight. This is certainly keeping a bid in the energy, agriculture and even a lot of commodity sectors. Any resolution or peace deal should send these industry groups lower as they are all very overbought and extended. The Russian Ruble.

3. Twitter employee meltdown continues. Musk has been appointed a director and the beat goe

3. Gold/Silver are in a very tight trading range. Nothing terrible for gold but a peace deal will cause a sell-off. It hasn’t tested recent highs yet.

4. Bitcoin is getting hit today. It hit resistance and pulled back.

1. Elon takes a 9% stake in Twitter (TWTR). This news is giving the stocks a 20% pop this morning. It's also helping a lot of the social media names that seem to be trading in sympathy to the stock. Revenge of the Babylon Bee.

2. Tech stocks are rallying higher this morning. There is some weakness in the Dow Jones Industrial Average (DIA), but it is not really much. The S&P 500 Index (SPY is trading higher by 0.20%).

3. Last Friday, the transport index (IYT) tanked lower by nearly 5.0%. They are actually lower again this morning. Railroad stocks and trucking led the decline. When the transports fall from the sky it should make everyone a little cautious.

4. Interest rates going higher and mortgage rate is over 5%.

5. Gold has been trading sideways for the past few weeks in a range. As I have said before, unless there is some type of resolution in Ukraine I have a difficult time seeing gold falling. If there is a peace deal the precious metal should pull back sharply.  

6. Bitcoin is holding up well trading around the 46,000 level. On Friday, it finished slightly above its 200-day moving average, so that was a positive. The negative is that it is going onto a ton of daily chart resistance from the month of December 2021.