Inflation, interest rates and recession worries become a focal point for investors once again as Asian markets turn lower and Wall Street sees its gains from a day before evaporating.  

Recession fears are once again pushed to the foreground as Goldman Sachs also raises its probabilities of a U.S recession to 30% in the next year. Even though this is a low probability of a recession, investors are worried about how far central banks will push attempts to curb record inflation with interest rate hikes. U.K inflation has reached a 40-year high last month of 9.1% with soaring food and beverage prices being the main contributor.

The Wall Street 30 Technical Analysis

With recession fears creeping back into the global economy, we might see all the major global indices push lower for the rest of this week. The bears have taken control over the last week and our new adjusted levels are still relevant as described in our previous Wall Street 30 (WS30) note.

The price action on the WS30 did reached our 29751-support level and prices did rally from there to the major resistance level at 30630. We could see another leg lower from this resistance point and if the 29751-support does not hold, then the 29235 level becomes a focal point.

Volume is decreasing on the 4H chart supporting the downward move as the relative strength index (RSI) also moves lower to oversold levels.

Current State / Chart Source: Wall Street 4H Timeframe  - GT247 MT5 Trading Platform

Take note: The outlook and levels might change as this outlook is released during the current days (Wednesday the 22^nd of June 2022) U.S Market open.

Sources – MetaTrader5, Reuters, Sam Byford, Bloomberg, CNBC,

Barry Dumas | Market Analyst at GT247.com

Barry has 12 years of experience in the financial markets. He enjoys educating clients on trading / investing and providing punchy technical analysis on securities. He currently holds a Wealth Management qualification and is studying towards becoming a Chartered Market Technician® (CMT) designation holder.

Disclaimer:

Any opinions, news, research, reports, analyses, prices, or other information contained within this research is provided by Barry Dumas, Market Analyst at GT247 (Pty) Ltd t/a GT247.com (“GT247.com”) as general market commentary, and does not constitute investment advice for the purposes of the Financial Advisory and Intermediary Services Act, 2002. GT247.com does not warrant the correctness, accuracy, timeliness, reliability or completeness of any information which we receive from third-party data providers. You must rely solely upon your own judgment in all aspects of your trading decisions and all trades are made at your own risk. GT247.com and any of its employees will not accept any liability for any direct or indirect loss or damage, including without limitation, any loss of profit, which may arise directly or indirectly from the use of or reliance on the market commentary. The content contained within is subject to change at any time without notice.