Market Pulse on February 10th

Olivier Rigot, EMC Gestion de Fortune

1 minute de lecture

S&P 500 4504,08 -83,10.

The stock market reacted negatively to the inflation report that points out that the increase of prices is out of control. The problem is not the level of interest rates but the massive liquidities that have been injected into the system since the 2nd quarter of 2020. We remind our readers that money supply as measured by M1 has jumped from Usd 4'500 billions to Usd 21'000 at the end of 2021. This is the main cause of inflation and the challenge for the Fed is to withdraw the excess supply without hurting the financial markets, a difficult task to achieve. On a daily basis, although prices retreated, we didn’t observe, among our indicators, a lot of selling pressure. Breadth closed negative: 1102 stocks advanced compared to 3296 that settled down. The technical pattern of the Nasdaq index is negative as the index hasn’t been able to settled above important moving average, a situation observed by many market participants.

Very short term oscillator Positive +
Short term oscillator Positive +
RVI trend Positive +
Trend short term (5 days) Up ​
Trend mid term (8 days) Up ​
Differential of trends Up ​
Risk profile 47 (scale of 1 (low risk) to 100 (high risk))

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