Yep, that and the majority of the daily range was already probably in if u use bar / candle analysis on the daily chart.
Interest rates were low for a long time. It is hard to appreciate the impact of rapidly rising rates and the yield curve inverting. The following is a list of effects: 1. Higher financing costs reduce corporate profits, increase risk of bankruptcy, and can cause dislocations in the labor market, affecting consumer confidence, business confidence, and investor confidence. When confidence is lost, spending tends to be reduced. 2. Consumer disposable income is reduced resulting in less demand for discretionary goods leading to lower corporate profits and their capital spending, affecting other industries. 3. Rising rates makes fixed income more competitive for investors’ dollars. 4. Stock valuations become relatively higher for those who use a discounted cashflow model resulting in a much smaller universe of perceived worthwhile investments. 5. Relatively higher US interest rates versus other countries causes appreciation of the US dollar, resulting in our exports becoming more expensive to foreign buyers, usually reducing demand, assuming US corporations attempt to maintain their margins. Long term rates have roughly doubled and represent a major economic and equity market headwind. In other words, to quote one of our own, “Lifts are gifts”.
It depends how you look at it, the June lows in the December contract have broken. The June low for the September contract was 3639 and hasn't been reached yet. Edit: it just reached 3639 as i was typing this.
It pretty much did what we discussed yesterday, just needed to get enough people looking long and shorts out before busting the lows. Not going to pretend like I traded it well today, because only took one trade for very small profit. Kind of let other factors shape my view and lost conviction. With that said both NQ and RTY have not yet taken out there June lows, so doesn't really change that much for my personal perspective and view. Still higher chance they eventually do as well, than not.