NASDAQ has made a new lower swing high for continuation to downside and using Fib Ext of 1.272 we can see a target also based on price action to the next demand area. With next FOMC occurring on 21 Sep and the recent news indicating that 75bps or 100bps probable increase this would concur with the fundamentals that are driving price lower.
From a fundamental view we have an inverted yield curve on US02Y & US10Y bonds which is opening their by driving the DXY higher and making the Majors and Indexes to go lower this is reflected in real yields slowing increasing in particular short term based on USFED 30 Rates futures contracts.
The Fed has a bit of work to do in order to reduce inflation back to the 2%-3% their by has to put the brakes on the freight train it caused with out majorly effecting the economy. Unfortunately it is going off various data points which will always be delayed and decisions being reactive.
Trade what we see but understand what is driving it
From a fundamental view we have an inverted yield curve on US02Y & US10Y bonds which is opening their by driving the DXY higher and making the Majors and Indexes to go lower this is reflected in real yields slowing increasing in particular short term based on USFED 30 Rates futures contracts.
The Fed has a bit of work to do in order to reduce inflation back to the 2%-3% their by has to put the brakes on the freight train it caused with out majorly effecting the economy. Unfortunately it is going off various data points which will always be delayed and decisions being reactive.
Trade what we see but understand what is driving it