The S&P 500 reversed as FOMC updates provided only shallow comfort against a backdrop of broad-based selling. Fed Chair Powell’s inflation warnings and weakening market breadth suggest a fragile environment for equities.
S&P 500 reversed already premarket yesterday, and FOMC provided very shallow and fleeting comfort – what was telling was the selling across the many assets, not just in equities, but how far did the dollar get? Powell was understandably cautious and wary of the inflationary impact of any prolonged conflict, to say nothing about energy infrastructure going offline…
It was necessary to turn fast so as to capture gains, and respect what market breadth was telling us, and is telling us.
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