Even if you hate bitcoin, it's worth keeping an eye on.
The precursor to this bounce in equities was a turn in bitcoin. It has rallied 9% from the lows to $36,225 from a low of $32,975.
You can't value bitcoin the way you can a stock but it's a powerful example of sentiment and, for that it's a great indicator.
Now broader markets are bouncing with commodity currencies 30 pips from the lows. The S&P 500 has trimmed the decline by 40 points, or about 0.9%.
I think you need a catalyst to go lower here, in terms of war or something particularly hawkish from Powell. Who knows the odds of war but at this point the odds of going much lower without war are low. And Powell isn't going to be extra hawkish on Wednesday.
Given the emotional nature of this market (and frenzied option buying) we could see a bounce as big as the dip today. Beware the end of the US day though, all the worst selloffs have come then lately.
