Bullard: No Pivot In Sight

Bullard: No Pivot In Sight

(11/29/22) Merriam-Webster's Word of the Year: "Gaslighting," which is what markets have been doing to investors all year.

The Fed, however, has been very clear about its intention to continue to hike interest rates to stem the surging inflation.

And yet...and yet, markets have continued to rally on hopes the Fed will "pivot." Markets finally got the message Monday and sold off.

With the 20-DMA and the 100-DMA now very close together, there is good support for markets just below current prices.

This morning, futures are higher, but markets appear to be remaining within a consolidation range.

The January effect will be helpful, but the opposite could also occur, especially if the Fed continues its present course to higher rates.

Meanwhile, our MACD Sell Signal is getting close to turning lower, and this has been a good indicator of market direction all year long.

The risk to markets may well be the Fed's next oracle on December 14th.