Yesterday, we asked in the lead-up to the FOMC announcement and presser:
Is there [a Fed game plan] which can keep inflation high enough (but, not too high), prop up the US dollar, keep interest rates under control, keep the market elevated and actually improve the economy? Not likely.
Today, we have a definitive answer: no. The 10Y is plunging……so, the US dollar is finally cracking. As expected, this is doing a number on USDJPY……which is doing a number on futures, currently off about 30 points. This will put SPX back below its 2.24 and at a critical support point.
If you’re looking for a silver lining, don’t look at FB. After ping-ponging between the channel line, the H&S neckline and its SMA200, it’s faltering again after Zuck’s fumbled apology….…which means COMP’s sharply rising channel will break down on the open. Fasten your seat belts, folks!
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