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Weekly S&P500 ChartStorm - 28 November 2021

The S&P500 ChartStorm is a selection of 10 charts which I hand pick from around the web and post on Twitter.


The purpose of this post is to add extra color and commentary around the charts.


The charts focus on the S&P500 (US equities); and the various forces and factors that influence the outlook - with the aim of bringing insight and perspective.


Hope you enjoy!


p.s. if you haven’t already, subscribe (free) to receive the ChartStorm direct to your inbox, so you don’t miss out on any charts (you never know which one could change the whole perspective!)

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1. Selloff! I can’t help but wonder if “Omicron” is just the trigger the market was already looking for… Emerging Market assets have been quietly but steadily bleeding away in the background (chart shows local currency debt and EM equities - both also reflect the FX aspect, which has been a disaster recently as the US dollar heats up), and the S&P500 itself had just seen an overbought RSI signal. So given that background context (not to mention taper is now underway), maybe this goes a little further?

chart of S&P 500 overbought and EM intermarket analysis bearish divergences

Source: @Callum_Thomas



2. Emerging Markets vs S&P500: After a number of false dawns, EM equities have made fresh relative low vs US equities. It would be perhaps ironic if what it took to turn the corner on this chart was a re-visitation of the all time low back around the peak of the dot-com bubble (prior to the major multi-year bull market in EM).

long term chart of EM vs S&P 500 relative performance

Source: @topdowncharts



3. Oil Breakdown: Last time crude oil broke down this sharply it didn’t end too well for stocks. Could be explained away as a knee-jerk reaction to Omicron, but certainly something to keep an eye on.

chart of WTI crude oil breakdown vs S&P 500 risks

Source: @Callum_Thomas



4. S&P 500 vs Bitcoin: “Just two risk-assets selling off...“ Worth also keeping an eye on markets like Bitcoin (and others) where a lot of speculative money has been crowding into. Volatility across assets can damage overall speculative sentiment.