10-Year Treasury Yield
The S&P 500 is near record highs, while the market is balancing softer inflation/rate expectations against geopolitical and growth risks.
The #1 thing to watch: Iran/Hormuz + oil
This could completely override technical signals.
If oil falls and there is progress toward reopening the Strait of Hormuz → bullish S&P 500.
If oil suddenly jumps because negotiations deteriorate → reduce long exposure.
This is particularly important because higher energy prices can bring inflation back and make the Fed less willing to cut rates.
Wednesday, Aug. 19 — MOST IMPORTANT DAY
FOMC minutes at 2:00 PM ET.
This is the event I would circle on your calendar.
The July meeting was unusual because three Fed officials wanted a rate hike, while the committee kept rates at 3.50%–3.75%.
If minutes sound dovish:
Fed less worried about inflation → yields down → Nasdaq/S&P potentially strongly bullish.
If minutes sound hawkish:
More officials concerned about inflation → yields up → Nasdaq vulnerable.
I would avoid entering a large new position immediately before 2 PM ET.
The biggest warning
If oil spikes + Treasury yields rise + S&P breaks its previous day's low, I would immediately become much more defensive.
That combination would tell me that inflation/geopolitical risk is beginning to overwhelm the bullish Fed/earnings story.
Bottom line for Aug. 17–21: 🟢 cautiously bullish, but expect volatility around Wednesday's FOMC minutes and any Iran/Hormuz developments. |