Good Monday morning and welcome back. On Friday, investors were reminded of why September is known for volatility. And with the computers likely cued up and waiting for a reason – any reason – to sell stocks, current route would appear to be self-fulfilling to a certain degree. However, the bottom line is the market is back in freak-out mode.
At issue is the idea that the world’s central bankers are ready to begin backing away from their overly accommodative monetary policy. More specifically, that here in the U.S., FOMC governors are scurrying around trying to prepare the market for a September rate hike.
But before we get into a tizzy about the end of the great bond bull or what comes next from the Fed, let’s step back start the week with a review of the state of the market and our objective, disciplined major market indicators/models.
The first step is a review of the price/trend of the market. Here’s my current take on the state of the technical picture…
S&P 500 – Daily
From a longer-term perspective (e.g. looking at a weekly chart of the S&P 500)…
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