A Macro Event was Signaled Yesterday
What does this mean ?
There should be plenty of selling and trading opportunities as most traders and investors key off micro events. For the S&P, runups to the 2625 area are probable, and maybe even more to the 2675 area if the FED says that they are done raising rates for a while.
What is Important ?
First, realize this market is not going down because of the current FED. It is going down because of Prior FED policy, the things that Bernanke, and to a lessor extent Greenspan and Yellen did since 1987. We have been living in a Technocrats Heaven, an economy in which the FED took away control from Free Markets. Now with a FED Chair trying to bring back Democracy and allow the markets to do their thing, the cry babies are all over the place. I would not be surprised to see Powell get fired. But that will not make things better, eventually it will dawn on the markets that they are out of ammunition and will need to get back to work doing things the normal way.
Artificiality is Coming to an END
That is the direction. Tomorrow we will talk about how things got distorted.