Bassanese Bites: Not for turning – August 22 2022
Market update: week in review
After recent solid gains, global stocks suffered a modest setback last week as the combination of increasingly weak US economic data and resolute hawkish commentary from Fed officials started to unnerve investor sentiment.
As evident in the chart below, a range of technical headwinds are not helping. US stocks now appear over bought in at least the short-run, with the daily RSI breaking above 70 mid-week. The S&P 500 is also meeting resistance at the 200-day moving average, along with the downtrend line from the market top earlier this year.
