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March 28 – According to the Wall Street Journal, Israel has begun limiting the use of its most advanced missile interceptors due to depleted stockpiles caused by ongoing Iranian attacks, forcing the IDF to increasingly rely on upgraded but less capable interceptor systems. Recently, two Iranian missiles struck the southern cities of Dimona and Arad after a failed interception attempt using a modified, lower-level system. Israels air defense system has long been considered one of the most advanced in the world, but has so far relied heavily on the Arrow system to counter long-range ballistic missile threats. However, officials are now limiting the use of these high-end interceptors, turning instead to upgraded versions of the Davids Sling (Israels medium- and long-range air defense system) and even the Iron Dome system, which were not originally designed to deal with such threats.On March 28, Iraqi Electricity Ministry spokesman Ahmed Abadi stated that Iran had halted natural gas supplies to southern Iraq since the evening of March 27, after a previous daily supply of 10 million cubic meters. Abadi added that Iran is also currently limiting its natural gas supplies to central Iraq to 10 million cubic meters per day. He noted that the ongoing instability in the region is impacting oil extraction, production, and exports within Iraq. The Iraqi Electricity Ministry is closely monitoring the situation to ensure that Irans restrictions do not affect the fuel supply needed by power plants in Iraq.On March 28, the Yemeni government issued a statement condemning Iran for dragging Yemen into the regional conflict through its supported armed forces. The statement pointed out that Iran, with the help of the Houthi rebels and other forces, is interfering in regional affairs, undermining national sovereignty, and threatening regional security. The Yemeni government believes that the Houthi actions serve Irans regional strategy. The statement warned that such actions will exacerbate Yemens humanitarian crisis and impact food and energy supplies. The government emphasized that the right to decide on war and peace belongs to the state, and any illegal military action must bear the consequences. The Yemeni government called on the people to refuse mobilization for war and urged the international community to increase pressure on the Houthi rebels and support the restoration of national power, stability, and development. Iran has not yet responded to this statement.On March 28, the Iranian Islamic Revolutionary Guard Corps (IRGC) issued a statement saying that, as part of Operation Honest Commitment 4, the IRGC Navy and Space Force conducted strikes against multiple heavy industrial targets in the United States and Israel using missiles and drones in the 85th wave of attacks. The statement indicated that this operation was in retaliation for previous attacks by US and Israeli forces against Iranian civilian industrial facilities. During the operation, Iranian armed forces launched saturation attacks on heavy industrial centers in Israel and other regions, destroying some targets. The IRGC emphasized that if the US and Israel continue to attack Iranian industrial systems, the scale of Irans subsequent retaliation will "exceed their expectations." In addition, during the interception and counterattack operations, Iranian air defense systems shot down a US-made MQ-9 drone over Shiraz. A US F-16 fighter jet was hit in southern Fars province and subsequently crashed while en route to an emergency landing at a base in Saudi Arabia.March 28 (Wall Street Journal) – Energy analysts warn that the oil market could face even greater turmoil if the Houthi rebels in Yemen resume attacks on Red Sea shipping. A renewed attack could cut significant amounts of oil from global supply and drive up prices. Saudi Arabia has been diverting as much crude oil as possible from the Persian Gulf to its Red Sea port of Yanbu, from where cargoes are primarily destined for Asia. While this hasnt fully offset the amount of oil unable to pass through the Strait of Hormuz, it has helped limit the rise in global oil prices. Analysts say that if Houthi attacks make it too dangerous for tankers to approach Yanbu, millions of barrels of crude oil could be stranded daily in the Middle East. In that case, Saudi Arabia might be forced to cut production along with Kuwait and Iraq.

S&P 500 Continues to Threaten Resistance

Alice Wang

Aug 04, 2022 15:09

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Wednesday's trading session saw a little increase in the S&P 500 as we once again ran into resistance.

Technical Analysis of the S&P 500

As it seems that we are about to challenge a significant region of resistance, the S&P 500 has increased somewhat throughout the trading session on Wednesday. In the end, I believe that this market will face considerable pressure over time, and I do not believe that a meaningful breakthrough will occur until we break over the 4200 level. This appears highly unlikely to occur in the near future because Friday is when the employment report is due.


There is a lot of technical evidence to suggest that we could halt here, but keep in mind that the 200 Day EMA is situated just below the 4200 level. I believe we will go for the 4300 level above, which is another region of resistance, if we can break over 4200. If we break above that level, I believe the trend has fully shifted, and the S&P 500 soars as if nothing ever went wrong.


Much of this is predicated on the hypothesis that the Federal Reserve may need to change course soon as a result of the economy's performance. That, however, ignores the fact that inflation, although somewhat reducing, is still very high. Since it is without a doubt one of their top worries, it will naturally take center stage. It will be considerably worse if inflation starts to increase. While Wall Street tries to persuade itself that the Federal Reserve will shield it, the truth is that there may not be much of an option for the Federal Reserve other than to keep tightening moving ahead.