In what direction is the market heading? The Federal Reserve is hawkish as hell; when will they cease tightening the monetary policy is something that only time can tell. I read some articles online predicting that the Fed will keep hiking the interest rate until “something goes wrong” and then pivot. In my opinion, this is likely what will happen. How likely is it that nothing will go wrong in the financial system when the rate of rate hike is so aggressive? But still, it’s impossible to predict when the Fed will pivot as they probably don’t know the answer themselves. Keep raising the rate until inflation is 2% or until a depression hits, whichever comes first. The Fed’s role is to continually put off the worst-case scenario as long as possible.
[Source: https://www.fxpro.com]
The Consumer Price Index (CPI), which is scheduled to be issued on September 13th, is likely to be the next market mover. If inflation continues to rise, this might be terrible for the market since it indicates that the Federal Reserve will continue to raise interest rates. If inflation is trending downward, the Federal Reserve may decide to hold off on raising interest rates too much on September 21st. If inflation is higher than 8.5%, you can anticipate a sell-off in the market ahead of the rate decision. On the plus side, inflation should now be under control, in my opinion, as the United States is light years ahead of Europe in its fight against inflation.
Silver Market
The bear market is brutal as silver has just broken down from a strong support level. Although this has not been verified as of yet, if silver does in fact, have a breakdown, then it will be viable to purchase silver at roughly $15.7, which is the next major support level. I am aware that the current state of the silver market is disheartening; nonetheless, I believe that the only way to be successful is to keep DCAing and buying the dips of the dips.
Silver's Confluent Supports
And, of course, the strong support I mentioned above happens to be the 0.618 fib number. This kind of confluence makes the support stronger. But still, it’s about to break down lower because the selling pressure in the bear market is too intense. But rest assured, the next strong support is also confluence with the fib support, which is 0.784 fib number. What a coincidence! The Universe is telling me to place a buy order at around $15.7!
All view expressed above is my personal opinion. They are not FA.