Risk: Hey... They're Printing Money Over Here!!!
The last week just shows you that this is all a complete cartoon in the financial markets, and there's always one solution... printing.
Equity Storm Watch Is GREEN on the S&P 500 and GREEN on the Russell 2000
A positive uptick in retail sales defied some expectations and gave the U.S. economy a bit of a jolt when needed. Markets are moving higher, with the S&P 500 at 5,725 (boy, that 6,000 call looks better and better each day). Markets are preparing for the Fed’s next move tomorrow as the Fed Open Market Committee starts its meeting today.
Remember, there is a Fed Drift anomaly in the markets - where we typically see markets rise heading into the event. Though that anomaly isn’t as pronounced as it used to be, it will feature some rotation and preparation ahead of tomorrow’s event. As always, I highly encourage readers to better understand how algorithms react to Jerome Powell’s speech at 2:35 - the majority of the time. We’d be looking for another squeeze higher.
BUT... look at the Nasdaq ETF (QQQ). We’re back at the top of a technical channel. Eye the purple line. That’s what needs to be tested and broken for this ma…
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