Profit Taking
The US equity markets start the day off in a defensive posture with Asian and European equities dragging things down overnight and Fed Bullard comments adding to the fuel stating that,
Base case is for slow growth, but recession risks have risen
Well we know Econemotions readers know full well that is the case, given the negative carry from the inverted yield curves right?
In fact we are certain more main stream commentors will be relaying that same information and its why we believe the FED will cease raising rates and most likely Q2 will see the first cut actually. We know this is a stretch but we have seen this play out before and the FED is always behind the curve. They use lagging indicators and play wait and see as opposed to being proactive.
Technically we were watching those target reversal levels (4027 and 12025) in both the Nasdaq and SP500 futures and we are seeing a rotation lower off of those:
