Breaking News
Ad-Free Version. Upgrade your experience. Save up to 40% More details

Is Stagflation Creeping up?

By Michele SchneiderStock MarketsJun 20, 2021 04:22AM ET
Is Stagflation Creeping up?
By Michele Schneider   |  Jun 20, 2021 04:22AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items

After Wednesday’s Fed announcement, the stock market has been sitting in an uneasy state.

4-Indices Charts
4-Indices Charts

The U.S dollar—Invesco DB US Dollar Index Bullish Fund (NYSE:UUP) not only firmed, but pushed over resistance from its 200-Day moving average at 24.69, confirming an accumulation phase.

Additionally, the iShares 20+ Year Treasury Bond ETF (NASDAQ:TLT) ran up along with the dollar, creating worry among investors that the market is slowing in pace.

However, the NASDAQ 100 Invesco QQQ Trust (NASDAQ:QQQ) made an inside day chart pattern which was a consolidative/pivotal chart pattern.

Meanwhile, the other major indices including the Dow Jones SPDR® Dow Jones Industrial Average ETF Trust (NYSE:DIA), Russell 2000 iShares Russell 2000 ETF (NYSE:IWM), and the S&P 500 SPDR® S&P 500 (NYSE:SPY) sold off through the day on Friday.

Of the 4 indices, only the QQQ was holding a bullish phase over its 50-Day moving average.

Come Monday, if SPY and IWM have a second close under their 50-DMA they will confirm a cautionary phase change.

This shows a potential weakness if only the tech-heavy index QQQ holds when the rest of the indices are break lower. Furthermore, the economy could also be shifting into something Mish has been talking about for a long time now. Stagflation.

Stagflation refers to an economy that is experiencing a simultaneous increase in inflation and stagnation of economic output.

For now, we will plan to continue watching the QQQs for a further divergence from the other indices, as well as the commodities, such as, precious metals and Food, which are potential hedges against an inflationary period.

ETF Summary

  • S&P 500 (SPY) Will confirm caution phase with second close under the 50-DMA at 417.33.
  • Russell 2000 (IWM) Broke the 50-DMA at 224.23.
  • Dow (DIA) Without near support DIA needs to hold and get back over 335.20.
  • NASDAQ (QQQ) 342.80 pivotal area.
  • KRE (Regional Banks) 63.38 next support area.
  • SMH (Semiconductors) 244.94 the 50-DMA.
  • IYT (Transportation) Needs to find support.
  • IBB (Biotechnology) 154 support.
  • XRT (Retail) Watching for second close under the 50-DMA at 91.80.
  • Volatility Index (VXXHeld over the 10-DMA. 36.18 next resistance level.
  • Junk Bonds (JNK108.94 support.
  • XLU (Utilities) 63.15 support.
  • SLV (Silver) 23.93 pivotal.
  • VBK (Small Cap Growth ETF) 278.27 needs to hold.
  • UGA (US Gas Fund) Sitting in pivotal support area.
  • TLT (iShares 20+ Year Treasuries) 34.68 pivotal.
  • USD (Dollar) Confirmed accumulation phase with second close over 91.51 the 200-DMA.
  • LIT (Lithium) 66.17 support.
  • XOP (Oil and Gas Exploration) Needs to hold 90.51 area.
  • DBA (Agriculture) Inside day.
  • GLD (Gold Trust) Watching for bottoming patterns.
Is Stagflation Creeping up?

Related Articles

Is Stagflation Creeping up?

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at’s discretion.

Write your thoughts here
Are you sure you want to delete this chart?
Post also to:
Replace the attached chart with a new chart ?
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Comments (1)
Ekpechu Alo Udoka
Ekpechu Alo Udoka Jun 20, 2021 8:30AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
I am hoping for your time and consideration and match service pr
Are you sure you want to delete this chart?
Replace the attached chart with a new chart ?
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
Sign up with Email