Equity buyers are not happy, the loss of the technical structure seeks compensation and yet in similar risky fashion the Portnoy crowd continue to buy the dip at over extended levels. The one missing aspect to their account, , it will land a devastating blow to the real economy and eventually, when the Fed taps, the stock market will follow.
The Russell already broke down:
Late buyers are trapped. We are going to hear a lot more on the media about how investors continue to rotate to value, but the cycle down has already started and this is an advantage to sharp speculators. To the downside the levels to track 24,500; 22,800; 18,600.
Thanks as usual for keeping the feedback coming 👍 or 👎
On topic of inflation, I would not be so concern of it as in a near term persepctive since us savings rate is still at the height not seen in decades though sharply retracing, people still are wary of their savings and money velocity still at rock bottom, we might be looking into lots of possible scenarios here.