Market in Paralysis
Everything points to a FED forced Pivot, yet the market refuses to acknowledge or pivot their views or positions.
One point that I have made many times during the Bubble, not everyone will be able to get out of a sinking boat. Already a few are hanging on the side as only a few of the S&P 500 stocks are holding up the averages.
What about fundamentals..
Just today we saw two points made in terms of government reports that show that market valuation is in danger. Those points are weak retail sales and increasing inventories of unsold stuff.
Other things to note, junk bond prices are under pressure as zombie companies will be the first to react to higher inflation.
4440 is a Key Level on the S&P…
A close below that level will confirm that the rally from October 4 through November 22 was the last attempt in keeping the balloon inflated.
And one more thing..the Base Effect Factor
For the lack of a better term, I find recent CNBC interviews to be a strange plunge into micro issues where no relevance is made to the fact that forecasts are being made basis a base of sand.
A late comment after Chairman Powell’s press conference..
The big hand holding circle showed itself well today. Powell speaks softly as Wall Street holds his hand. It is the only reaction possible as market players cannot get out until there is some good news that would induce the public to come in buy the stuff being sold. The easy thing for Powell to hide behind is the labor force participation rate.