It’s not a good look for risk as we look towards the start of European morning trade today.
The Fed, or should I say Powell, didn’t really take a side step away from a more hawkish tone yesterday and that was enough to send stocks reeling as gains turn to losses and futures are continuing the slide now.
The dollar benefited from all of this as it surged higher across the board alongside Treasury yields.
S&P 500 futures are now down 1.4%, Nasdaq futures down 1.6%, and Dow futures down 1.2%.
In my view, the charts are going to have a lot to say as we look towards the end of the week. The S&P 500 kept below its 200-day moving average yesterday but remains somewhat supported by the July and October lows from last year:
Something’s gotta give eventually and if it is a break to the downside, things can get really ugly, really quickly.