Institutional investors are still on vacation and will return to the markets next week. That means retail investors drive this market and spook themselves easily with every market move. It could be seen in today’s market price action. A relatively big move early in the morning before FED’s meeting minutes were published, and selloff right after that. But the retail investors who spooked themselves do not have enough money to push the market deep into the red. Last year, when Powell said “inflation,” markets lost 3%. Today? Sleepy day.
But it still can all change tomorrow. My expectations are that the investors will (as the media like to say) digest the meeting minutes and sell the market. Trend forecasting suggests it.
Other than that, we have a motionless and directionless market. It sits right at the support and waits for resolution. In this case, staying aside and waiting for the trend is best. The Ichimoku cloud is pretty much negative and suggests that more selling may still come, so let’s stay put and wait.
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