“Now It Gets Interesting” Trader Warns, Gold’s Move “Impressive & Significant”

Monday, June 3, 2019
By Paul Martin

by Richard Breslow via Bloomberg,
Mon, 06/03/2019

The news has been sordid. Markets are decidedly unsettled. And the mood among traders is one of resignation. It’s been the first day of this sell-off that I’ve not heard much, if anything, about bounces or oversold conditions. In fact, quite the opposite. Analysts are embracing the price action and arguing that even these levels reflect too much optimism. Self-inflicted wounds can be the most devastating.

Nevertheless, it’s a new month and probably worth taking some stock as to where we stand. We have a habit of extrapolating moves ad infinitum and creating narratives to bolster the case. On the back of proper forward guidance or hard economic trends that is an example of resolve and discipline. In explaining what may be current themes it works until it doesn’t. Especially if traders are trying to navigate waters roiled by behavior that can’t be made an input for any model.

The S&P 500 has fallen right into major-league support. Whether it holds or not will be a big deal in setting the tone for the coming month. There are technical levels galore between the current price and 2700. Including the important retracement level at 2715 of the move from last December’s low to May’s high. Remember how bullish everyone was a mere month ago? If stocks are going to hold, this is the zone.

The Rest…HERE

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