Consumer confidence hits US low amongst weakening data

1 May, 2024
As at 9am, AEST.

Gold Spot Price $AU3542

Silver Spot Price $AU40.82

Platinum Spot Price$AU1464

Matching our predictions of a ‘dead cat bounce’, the US500 hit exactly on point (shown in today’s chart). Generally as the sharemarket looks to find a new bottom, it takes an average of 3 low points before true consolidation occurs. So far we’ve seen one aggressive bottom over the past week with the US500 hitting 4923, rebounding back to 5122, then just today plummeting back down to 5027 in the last day.

If we continue to see lower lows, the outlook for the US500 and by extension the ASX200 is not bright.

Gold also saw similar price easing, potentially forming a massive head and shoulders pattern - or more likely, awaiting further turmoil and conflict based news before pushing to consolidate around 2200/2300.

Importantly, US consumer confidence hit a recent low as consumers are literally spent. With little to no liquidity in the middle and lower class left after mortgage hikes, new debt creation is low and disposable income continuing to retreat.

We’ll be keeping a close eye on the US500 to watch the continuance of this dead cat bounce pattern in the coming weeks.

Enjoy today’s charts.

Gold daily chart, with 200MDA

Silver daily chart, with 200MDA

US500, with 200MDA

ASX200, with 200MDA