SYA Daily Report, page-319

Getting volatile?
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Yes SYA gained 2 pips to finish at 9.5c. Our volume was huge - just over 216m shares traded. A big volatility today, both in volume as well in price action. Many times these volatility is indicative of a stronger price movement in the horizon - lets hope its on the upside. It was good to get over 10c intra-day, though we also touched 9c - finishing right in the middle. So no strong movement but good to finish in the green.
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ASX Li again had a mixed day without any strong direction. Of the 75 tocks that I track, it was flat - so on average no gain or loss
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Overnight US Li stocks were again weak, average loss around 3%. Yesterday they had lost 5%. Most US Li stocks made their 52 week lows yesterday. The general markets were down and it pulled Li stocks big time. I think ASX recovered towards the end of the day and that allowed Li stocks to recover from their morning lows. A very trying situation - Li sector has been weakest in this phase in nearly 2 years. It will turn, question is - when? And how much more downside is still left?
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What next:
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SP 500 had another big drop yesterday, second day in a row, finishing nearly 1.6% down on the day's low at 4430. ASX surprisingly finished in green, though by only a small margin in the closing auction. At one stage it was deep red - maybe thinking US markets will come back tonight?
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For last few weeks and even yesterday I had said that first check downside for SP 500 is at 4330/4300. And what did the market makers do? They stuck to the number and it finished exactly at 4330 - a number I have been calling for so long, precision game, could only be done by computers. Nearly every one was bearish and shorting the markets. And it played out exactly to scripts and letting all the shorters make money. Lesson is - if markets look bad, chances are it will drop, no wonder traders making money on up and down.
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Next numbers for SP 500 is 4300/4250 and very critical 4200. If 4200 is not held, then there may be more trouble. At this stage the uptrend from October is last year is still intact. But all indices and stocks are trading very weak and have broken their key resistances. We are in September, a bearish period, another week to go. Many believe we may bottom towards the end of next week, hopefully above 4200. But anything can happen, these are just odds, no certainity, who knows we could just reverse from here and start marching once again towards 4600.
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Lead indicators - very bearish for markets. VIX jumped over 15% yesterday, now above 17, reaching critical level of 20. Yields made a 17 year high yesterday - highest since 2006 - not good. Dollar index too increasing. Sentiment Indicator has turned to Fear from Neutral. Bitcoin lost 27k but still around 26.6k - so not that bad.
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So what will happen tonight? Yesterday the jobs number came hot - something which Mr Powell will not like. Tonight PMI data. It could provide some direction. But technicals are in play, algos in control, and bears looking for a kill. So overall not looking good. But one theory is that we did around 4330 few weeks back, we can reverse from here doing double bottom of this pullback.. Will that happen? . Lets hope so. Enjoy your weekend and all the best..