June 20, 2023
Good morning,
Profit-taking seems to be in the air at the start of this holiday-shortened week – Futures have been down as much as -.50% over the past few hours on no news whatsoever. It is a much quieter week ahead compared to last week’s event-filled minefield. There are no key economic data releases this week and the only notable event will be Chair Powell’s Congressional testimony tomorrow.
Short-term, the market has gotten overbought (NDR sentiment chart below), and there is an argument for “sell the news” following last week’s rally around the inflation data and Fed decision. Profit-taking shouldn’t be unexpected.
See you Thursday due to the holiday.
Be well,
Mike