BTD? If you just look at the final tally for yesterday’s selloff, it was an ugly outcome. But the intraday charts showed the broader equity indexes (conversely for bonds) trading in a diagonal top left/ bottom right pattern. Hence, it appeared to be a systematic decrease in risk (because of Powell’s remarks?). The trading trend has been to buy the dip, and today’s early action was exactly that. The S&P opened +2.7%, but the early support has diminished and stocks have retreated steadily all day. Value is outperforming, but more sectors are turning red (see above). The S&P 500 200 day moving average is 3013, and the index is just below that level now. Could the markets see a shift from the recent BTD trend?
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