October 16, 2022
Good morning,
Sorry about Friday’s Morning Note – the part regarding the likely beginning of another bear market rally. A rally did not begin Friday, the S&P 500 Index was down -2.37% on the day, and ended the week off -1.55%. However, short and intermediate term pessimism (technically, deeply oversold market conditions) still argue for a rally. It is also worth repeating that any rally at this time will likely be another bear market rally because the now likely macroeconomic recession ahead should trump the technical forces in the market calling for a rally. This is just a rewrite of Friday’s note – hopefully it is a little clearer.
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Futures are up +1.3% an hour before the cash market opening bell this morning. This week’s data highlights include Industrial Production tomorrow and Housing data on Wednesday. There will also be a full week’s worth of corporate earnings reports to digest. See you Wednesday.
Be well,
Mike