Today, the FED announced increasing rates by 0.50% and the markets went initially up but then sold off hard on Powell’s remarks about potentially higher hikes next year. Investors were worried that this speed and tightness may destroy the labor market and sink the economy into recession. Though the VIX futures term is still positive, it may change soon. The market seems like it wanted to go higher and finally break above the 200-day MA and be done with the bear market but after Powell’s remarks, it no longer seems to be the case. It is rolling over again. The good news is, it is not a sharp reversal so far. We are still in a bear market and the rest of the week will probably be to the downside.
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