How Will the Market React?
As mentioned yesterday, we plan to stay sidelined through today not wanting to gamble on the Fed announcement. This week’s Fed release has the potential to be one of the biggest market movers so far this year – or, it could be a non event, depending on the language. If they indicate that they are finished with rate hikes for a while it would be bullish and we are likely to see the market rally. If they remain hawkish and continue to be focused on inflation, then we may see recent market lows taken out quickly. A lot of people are betting, or better, gambling, on one of these two scenarios. We prefer to wait and see what sort of set ups, if any, result from the initial reaction.