Not the most likely outcome.. but momentum is down.
Japan reports GDP on sunday night.. would a huge gap down drive risk off?
This ladies and gentlemen would be the dip to buy!
Get the deflationary risk out! Have the Fed raise rates! Then market can survive off liquidity!
Oof this is tough. Larger Momentum divergence on the weekly chart! so its becoming more likely.
Should lead broader market down.
This could be viewed as a corrective pattern as well...
8% down then rally to all time highs?
Moving down means leaders strengthening and breadth weakening.
Moving up means laggers catch up with leaders!
So after a good move down.. a move up usually means strong moves down in SPX.
Moving up can also be seen as sign of strengthening breadth and a bottom.
Low rate environment and flat yield curve have created an unprofitable environment for banks and financials.
In addition the recently dovish fed in a still tight labor market will likely increase inflation and marginal costs weighing on financial's and corporate companies' alike profit margins. These factors will make earnings and guidance difficult this coming...