23 Aug ’22, 09:21 Central Euro Time:

The S&P finally unwound its 24 consecutive trading days of being “textbook overbought”; fundamentally, it remains excessively expensive, the “live” P/E at 35.8x (vs. the lifetime mean of 22.4x and a debt market with double the yield). The Euro, having slipped below $1 is the sole BEGOS Market at present below today’s Neutral Zone; volatility is light-to-moderate. Per our S&P MoneyFlow page, the renewed selling has thus far been relatively “fearless” such that we anticipate a price bounce. For the Spoo, the “line in the sand” has been reduced from 4276 to 4231 (by the Market Profile of most dominant prices traded across the past fortnight). The Dollar Index has traded up to its best level since September 2002, with Gold and Silver continuing to be strained in the balance; technically we look for Gold’s 1700s to hold and for Silver its 18s.