Bounce Time? 12th October 2022

🖼 Daily Technical Picture 📈

➤ US indices returns were wide spread. With DJIA finishing flat and Nasdaq continuing to fall. Large intra-day gains were unable to hold up. S&P500 hit a new low but the daily close held above the previous yearly low set on 30th Sept that can be considered as temporary support. VIX may also be peaking. There is a potential for a good sized bounce. CPI/Inflation data out Thursday should define where markets are headed in the very short-term.

➤ I locked in some profits by cutting positions in SPX500 and DJ30. My short exposure is -40%, composed of NASDAX and STOXX50. The maximum portfolio exposure is +/- 200% on capital, the level of highest conviction.

➤ Conclusion: Price action Wednesday/today prior to CPI data release is crucial for my next move. I'm leaning towards a bounce and may turn bullish.