Tuesday 7 March 2023

A red screen with Powell

US equity indexes closed significantly lower, SPX -62pts (1.5%) at 3986. Nasdaq comp' -1.2%. Dow -1.7%. The Transports settled -1.2%. R2K -1.1%.

SPX - daily

VIX - daily


US equities opened broadly flat. The Fed issued a press release at 10am, with the market turning broadly lower. The Powell didn't help...

The notion the Fed will see inflation fall back to its 2% target is as ludicrous as 'transitory' was. Instead, I expect the target rate of 2% to be raised to 3%, if not 4%, within 6-18mths.

Equities saw a few bounce attempts, but the SPX was unable to hold psy'4K, printing 3980, and settling at 3986. 

Volatility picked up a little, the VIX printing 19.74, and settling +5.3% to 19.59.

The first noticeable flowers of the year

Spring equinox is March 20th

A somewhat hazy full moon

Extra charts in AH (usually around 5pm EST) @ https://twitter.com/Trading_Sunset

Goodnight from London


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