In this weekly note, we highlight 10 of the most important charts or themes we're currently seeing in asset classes around the world.
Bears Take Control
Last week, we wrote about the importance of bulls defending the September highs in the S&P and other large cap averages. They didn’t. Instead, prices cut beneath these potential support levels with ease. Another area of importance we’ve been watching since last year is the 2021 lows in the Russell 2000. After being tested at least 6 times, sellers finally took control at this ~210 level in recent sessions. For now, none of the major averages in the US are above our tactical risk levels. We’ve seen a change in character during this correction as bears are becoming more aggressive. This is illustrated by momentum hitting extreme oversold conditions in all of the major indexes. We always want to respect our risk management levels, and currently they are telling us we can’t be long these indexes. That only changes if and when prices reclaim these key levels.
