Daily Alert – Wednesday 10th July 2024: Big moves on S&P500 expected tomorrow

Mark NugentDaily Alert, July 2024

Daily Alert – Wednesday 10th July 2024: Big moves on S&P500 expected tomorrow

Good afternoon.

Most of this week’s fun is to be had tomorrow with US CPI.

Having said that, the Reserve Bank of New Zealand held rates at 5.50% as expected. However, the statement was considerably more dovish than expected, with all thoughts of rate hiking, as per the last meeting, magically disappearing as economic conditions deteriorate.

I have gone long, again, on USDJPY. It has not really taken off but is in the money.

In the news I cover two stories. One is about the volatility in the S&P500 that tomorrow’s US CPI could generate, according to JP Morgan. The numbers being forecast are huge, for example, a 500+ point move. That’s 12 times ATR which, at 2% risk per ATR, offers substantial opportunity. The second article is about the much anticipated, at least my me, correction in the S&P500. A correction is a move against the prevailing trend of at least 10%, which is also around 500 points.

I’ll be back tomorrow.

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