“Major stock indices crossed some key technical thresholds, and interest rates and commodities pulled back sharply as economic concerns really start to pile up ahead of a hawkish Federal Reserve. It’s rare you see the Fed tighten monetary policy into an economic backdrop that’s clearly weakening, but that’s where we stand. It’s hard to get too bullish about the prospects for the economy or the market from these levels, but as sentiment surveys and positioning clearly indicate, the negative view is as crowded as Times Square on New Year’s Eve. The markets can always see further over the horizon than any of us, which makes it hard to ignore the moves higher we’ve seen over the last month. We’re still not out of the woods but let’s evaluate where we stand and how were positioning around that.”
Click here to read the full Markets in Motion from Donoghue Forlines.
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