All eyes on the FED
Unfortunately, choppiness persists and the current correction in stocks continues.
After a strong stock market recovery in March, the performance in April has been abysmal, which triggered new technical warning signals for the Meta Strategy model.
At yesterday’s FOMC announcement of the first 50 bps rate hike since 2000, Mr. Powell managed to calm extremely hawkish market expectations.
The clarity of the communication about the FED’s future path may even be the basis for a solid bottom of an entirely normal bull market correction, if the economy proves to be resilient — in any case it would be short-sighted to simply assume that we necessarily face further stock market deterioration.