The rebound of the stock market is blocked, and the technical picture shows a rare downward trend😲
As the employment data was lukewarm, the market believed it was enough to prevent the Federal Reserve from further raising interest rates. The stock market tried to launch another rebound on this narrative. However, just after 1pm in New York time, the market suddenly sold off, and the SPX index fell without news. A rapid .5% drop, a technically bearish move we haven't really seen since the rally began in March; moreover, following the release of its second-quarter earnings report, Apple has completely broken the uptrend line for the year and reversed to the downside, The stock market VIX has also awakened from its 4-month slumber. With most market participants bullish and long exposure back to all-time highs, are we finally seeing a temporary top in stocks just in time for the seasonally challenging fall season? Time will tell, but Wednesday's CPI data may provide another key clue.
