• CPI is up 0.4% for September 2022
  • Crypto Altcoins nuked last night ahead of the CPI print this morning
  • This is a signal that the Fed will continue to raise rates at the next FOMC Meeting in November
    • Anticipate 75 to 100 basis point increase which will increase volatility in the markets

S&P 500 / $SPY

  • Pre-market dropped from $360 to $350 marking a lower low going into market open this morning
  • This could be the beginning of a waterfall selloff going into the next FOMC Meeting

On Monday we reviewed Polygon/$MATIC and predicted a pennant breakdown:

And here’s where we are now:

  • Sometimes technical analysis works
  • Perfect timing with the CPI print this morning

Altcoins Selling Off / Bitcoin Price Holding

Polygon, Cosmos, and Polkadot all dipped heavily yesterday. Polkadot / $DOT printed a new local low:

  • There’s more pain ahead if the Fed is expected to raise rates again

Now let’s take a look at Bitcoin:

  • Heavy selloff on Bitcoin
  • Note 2 things:
    1. Altcoins sold off before Bitcoin did and Bitcoin sold off before equities did
    2. The RSI is heavily oversold – I’m expecting a bounce here

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Your investment strategies could differ from mine based on your risk tolerances, research, and time horizon, so I encourage you to do your own research as information provided by The Rebel Economist or Breaking Metrics should never be considered financial advice.

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