The economy is on fire, with hiring at huge pay increases. That's good right?
Well, for the Federal Reserve Bank, the worst situation is run-away inflation. That is the only way for the US dollar to become no longer the store of value the world depends upon. There are soo many bonds out there, that if fear truly took hold, we would see rates catapult quickly as treasuries dump.
So the FED is forced to throw water on the economy. The top 0.05% of the wealthiest are looking further out than the vast majority of investors. IF (this is an IF) the FED must take aggressive action, the wealthiest will dump as it becomes more apparent the FED must take action.
The saying is Never fight the FED, well, this is the same for up and down for the market.
But I do think the market will move higher first.
The purple outlines the 'head and shoulders' mega topping pattern we may be seeing unfold.
We had many people in total fear, since the top, and huge fear with Russia. Russia will pass, America will open up from COVID, and I think we get a nice bounce into the summer, then fail hard core before the elections. The top is still likely in, simply because as the market tries to make new highs, there will be more dumping by the top 0.05%. Good luck!
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