2022 crash does not end until Fed reserve stops lowering
The Fed Reserve Pivot or Pause will not turn the market around.
Check out the chart Fed funds rate and ES.
The 2022 crash does not end until the Fed is done lowering rates back to 0% or close to 0% . In every crash from 2001, 2008, and 2020 the crash ended when the Fed was done lowering the Fed funds rate. It will be the same in 2022 crash. But, dont be tricked when the Fed is done raising rates in thinking the crash is done.
There is a bigger issue in the economy - a dollar shortage, which is causing banks to not want to lend to each other, so they are going to swiss central bank for dollars. They are going to swiss central bank because that institution is a close to risk free as possible. Banks are not trusting each other. for lending.
In addition, watch for vix to spike over 50 as well. Every economic crisis will have a big vix spike over 50.
Check out the chart Fed funds rate and ES.
The 2022 crash does not end until the Fed is done lowering rates back to 0% or close to 0% . In every crash from 2001, 2008, and 2020 the crash ended when the Fed was done lowering the Fed funds rate. It will be the same in 2022 crash. But, dont be tricked when the Fed is done raising rates in thinking the crash is done.
There is a bigger issue in the economy - a dollar shortage, which is causing banks to not want to lend to each other, so they are going to swiss central bank for dollars. They are going to swiss central bank because that institution is a close to risk free as possible. Banks are not trusting each other. for lending.
In addition, watch for vix to spike over 50 as well. Every economic crisis will have a big vix spike over 50.