Are we seeing a move into support or is this a “dead cat bounce”? I tend to think we are going to see a little bounce today, maybe Wednesday, followed by a huge sell off Friday.
AlphaBetaStock.com wrote earlier: I am not sure we have seen true support yet in the markets. Financial markets are still in a fog, and nervousness persists. When pessimism has reached its peak, it is often at these times that we see a bearish rally in the market.
However, we could likely see something like that this week or a “dead cat bounce” because prices seem to have been incorporated into future monetary tightening and the reduction in the Fed’s balance sheets. No one seems to be surprised by inflation. This means investors could reach regain confidence and jump into the market causing it to jump up, only to crash soon after. Personally, I am waiting to see more support as I think the effects of inflation are just started to be felt by consumers.
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