[WATCH] Closing Bell — Don’t Look Down
In today’s Money Weekend…ASX 200 has been holding up well…it looks like the low of the correction isn’t in yet…and more…
Many key markets around the world are neatly poised on a knife edge.
The US dollar looks like it is itching to bust out to multidecade highs. The US 10-year bond yield is heading towards 3.25%, which is the highest yield in a decade. A spike in yields above there could see the selling accelerate.
The S&P 500 is testing the low of the correction of the past four months, and if the support can’t hold, stocks could fall another 15%.
The ASX 200 has been holding up remarkably well, but another leg lower in US markets will knock the stuffing out of our outperformance.
Major support levels don’t give up their ground easily, so there is still a chance prices can find support and muddle along for another few months before turning back down again. But it looks like the low of the correction isn’t in yet, so traders and investors need to keep their wits about them as we move forward.
Click on the picture below to watch the latest episode of the ‘Closing Bell’ where I discuss the explosive set-up in the US dollar, US 10-year bond yield, S&P 500, and ASX 200.
Until next week,
Editor, Money Weekend