What a fakeout in stocks this week. The bulls were feeling great after the soft CPI and hopeful that Powell would tip the nod towards easier policy. Instead, he leaned in hard to hikes and that was followed by an even-more hawkish lean from Lagarde.
Now the bond market is signaling an unnecessary recession and US stocks posted an ugly outside day on the chart.
On the day:
- SPX -1.1%
- Nasdaq Comp -1.0%
- Russell 2000 -0.7%
- DJIA -0.9%
On the week
- SPX -2.1%
- Nasdaq Comp -2.8%
- Russell 2000 -1.9%
There isn't much to like on the S&P 500 weekly chart after this week's outside reversal:
SPX weekly
