S&P Testing December Highs
“While market sentiment is showing signs of improvement, the biggest hurdle for stocks remains the Fed. There appears to be a disconnect between improving market action and an aggressive Fed that appears determined to keep hiking rates until inflation is finally brought under control. In addition, inverted yield curves continue to predict the likelihood of an economic recession which would be negative for stocks. At such times, technicians need to rely more than ever on market charts to help determine likely market direction. The next big test will come after next week’s Fed meeting. And how stocks react to what the Fed does and says about its future intentions.” – John Murphy