{"id":59577,"date":"2022-04-29T18:12:13","date_gmt":"2022-04-30T01:12:13","guid":{"rendered":"https:\/\/drduru.com\/onetwentytwo\/?p=59577"},"modified":"2022-05-01T07:44:02","modified_gmt":"2022-05-01T14:44:02","slug":"on-way-to-oversold-fed-faces-test-of-resolve-the-market-breadth","status":"publish","type":"post","link":"https:\/\/drduru.com\/onetwentytwo\/2022\/04\/29\/on-way-to-oversold-fed-faces-test-of-resolve-the-market-breadth\/","title":{"rendered":"On the Way to Oversold, Fed Faces Test of Resolve – The Market Breadth"},"content":{"rendered":"\n

Stock Market Commentary<\/strong>:<\/h2>\n\n\n\n

Trading extremes led to a snapback rally as expected<\/a>. However, the rally was short-lived as bear market action quickly resumed. The stock market looks like it is on the way to oversold trading conditions as March closing lows failed to hold as support. Fear is palpable as traders and investors scramble to position ahead of the coming week’s meeting of the Federal Reserve. In turn, the selling pressure sets up a test of resolve for the Fed. Collectively, the market is reminding the Fed that it desperately needs easy money policy to stay afloat. However, the Fed risks a serious credibility crisis if it backs off policy normalization right after getting started.<\/p>\n\n\n\n

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Equities and bonds seem to be warning the Fed that its policy measures could cause an economic and\/or financial crisis: equities are swooning and the yield curve is nearly negative territory.<\/p>— Cathie Wood (@CathieDWood) April 26, 2022<\/a><\/blockquote>