Yesterday was a technical move caused by volatility being bid up in advance of the “news.”
Market Makers held a lot of negative gamma on the indices prior to the announcement which generates volatility.
After FOMC events, volatility comes down as people sell puts. This triggers buying from Market Makers to rebalance their books, buying more as prices rise.
It's 100% a reactionary, technical cycle that happens.
After the short covering and rebalancing there is no more buyers to keep prices going, given that we are in a cyclical bear market cycle, which began in 2021, caused by rising inflation and rising Fed rates + QT.
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