Hawkish Fed Minutes Spark Market Sell-Off

Summary

Markets experienced a significant sell-off following the FOMC meeting and a hawkish tone from Kevin Warsh, leading to increased expectations of an October rate hike. The 10-year yield and the dollar spiked, while gold, silver, and Bitcoin fell. The S&P 500 (SPY) closed down 1.25%, with a sharp decline after the FOMC minutes. Key support levels to watch are $739.02 and $727.73. The Nasdaq also fell 1.34%, remaining above a minor support level at 25,891 points. The SMH, representing semiconductors, is trading on an inclining trendline and has closed below it for two consecutive days, with a critical support level at $623.13. A break below this could signal further selling pressure. The IWM also saw selling pressure emerge. The 10-year yield broke above a key trendline at 4.484% following the FOMC minutes and could move towards 4.554%. Gold and silver experienced selling pressure as the dollar surged after the FOMC announcement. Oil is showing a continued decline, potentially setting up for a technical bounce as the daily RSI nears oversold territory. Natural Gas (Nat Gas) closed below its inclining trendline, but a confirmed breakdown requires closing below today's lows. Bitcoin fell about 2% today, with a minor support level at $62,987; a break below this could target levels near $40,000. Charts are showing signs of potential selling pressure, with daily topping tails on STX and WDC, and an engulfing reversal candle on MU, suggesting cracks in the market's upward momentum.