Stocks did all they could, yesterday, to project renewed strength. But, despite gaining 23 points, SPX didn’t break out of the falling channel it’s been in for a month. Neither it nor ES were able to clear the neckline of their IH&S Patterns. And, though DJIA finally closed above its 200-day moving average, it was by 3 points, literally in the final 10 seconds of trading.
It’s the same sense I get when I read the Fed minutes. Things are going so great that they need to raise interest rates twice more. But, they can’t shake the feeling that a recession is just around the corner. So, they’ll probably stop hiking soon — coincidentally, right about the time the yield curve (as a result of their hikes) would otherwise invert.
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