Yesterday's trade was indicative of a normal consolidation period after last week's big gains as what we expected. The major averages floated around the unchanged mark for most of the session before taking a sharp turn lower ahead of the close after the S&P 500 failed to maintain a position above the 4,000 level. Things were held back by the belief that the stock market moved too far and too fast last week; given that economic and earnings prospects continue to deteriorate and Fed officials continue to talk tough about inflation still being too high.The latter point was reflected by Fed Governor Christopher Waller (FOMC voter), who said "we've still got a ways to go" before stopping interest rate hikes, according to Bloomberg. To be fair, Fed Vice Chair Brainard said it may 'soon' be appropriate to slow the pace of rate hikes, according to CNBC.
From tech side of analysis, no matter you are bullish or bearish about this market, I would like to view yesterday as a pivot highs. Therefore, I would like to do "sell the highs" around this area instead of "buy the lows", What Fed Vice chair said about :"may 'soon' be appropriate to slow the pace of rate hikes" in my opinion is talking nonsense, without next couple months CPI data, how they can be so sure that inflation have been controled? you will have chance to buy back your positions, just be patient. Lighten your positions, taking some profits or do couple day shorts~Chill~
SPX