Is USA Market entering Recession?

It appears that USA mkt is entering Recession and thus markets may go down further. However, when everything appears gloomy, it may mean that mkt has bottomed out. Moreover, Rumours floating around that the Chinese President is under house arrest, and if true then mkts may further crash by 5%

Looks like the reversal will continue today. We are very close to the starting point for the month. Going forward, the most important level is 17154. This is low for August and if we close below it, we can see a sharp sell off. SgX is currently at 17190.

Global markets are not only weak but have also shown poor performance against emerging markets. 2 days we wrote about our outperformance against US markets and now we are trying to move towards the mean. 

Nifty. Very stiff resistance at 17440. It was a strong support till Friday. Support for the day comes in at 17150 and then 16950. 

BankNifty. Reversed from the double top in Bank Nifty but still looks better on charts than Nifty. 38800 is the most important level as we started the month at it and any close below it will give a red candle on the monthly charts. Upside resistance is placed at 40200.

Derivative. Data is super bearish. All-round shorts in Index Fut, Stock future and put longs. But since we are oversold, we may see a pullback either today or tomorrow.

Check our Bank Nifty option tips and be on the right side of the market.

Update

Global bonds joined US peers in signaling a recession, with a gauge measuring the worldwide yield curve inverting for the first time in at least two decades.

The average yield on sovereign debt maturing in 10 years or more has fallen below that of securities due in one-to-three years, according to Bloomberg Global Aggregate bond sub-indexes. That has never happened before based on data going back to the beginning of the millennium. 

The inversion of the yield curve is typically seen to herald a recession, as investors switch money to longer-term bonds due to pessimism over the economic outlook. Those fears are growing as policymakers around the world pledge further monetary tightening to tame rising consumer prices.

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