Stock Market Update September 21, In yesterday's trading session, the bond market emerged as the headline-maker, displaying notable weakness that permeated into today. Particularly, the long end of the yield curve was hit significantly, dragging the major indices down by over 1% by midday. While this decline could be viewed as somewhat contained, given the circumstances, the market lost further ground in the afternoon, culminating in a 2% drop.
Switching gears to other asset classes, bonds indeed had a rough day, and despite the uptick in rates, the dollar remained relatively flat but tested a double a top from early March. Precious metals experienced some downward pressure due to the higher interest rates. Silver, however, defied expectations by registering around 0.5% gain, whereas gold slipped by the same margin. Mining stocks were notably affected, experiencing declines akin to those seen in fixed-income securities.
In summary, the market dynamics were largely influenced by a struggling bond market, impacting equities and other asset classes in various ways. This underscores the importance of a diversified investment strategy, especially in the current volatile environment.
Live Day Trading SPY ETF Chart in discord
In our live day-trading room, we recently executed a short position at the resistance level, represented by the orange line on the left-hand chart. Interestingly, this orange line served as a support level in yesterday's trading session. However, today the SPY ETF opened with a gap below this orange line, effectively converting it into a resistance level. Consistent with our trading strategy, we opt to short resistance levels when the overall trend is bearish. Conversely, we take long positions at support levels when the market is in an uptrend.
Today's free premium chart below
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