Markets fell again yesterday but not too much has changed. CPI data came in lower than expected giving J Powell additional cover to delay any tapering, and you can bet that there will not be tapering until 2022. Bond rates fell, which may give investors a reason to buy the dip. GDP forecasts also fell due to a slowing economy and that may cause the rate of inflation to slow. The drop yesterday in the SPX almost reached 2.5% from the highs after 5 out of 6 down days. That is pretty much on par for the corrections we’ve had this year. The the market is oversold in the short term and we may get a rally into the end of the week. However, it may be short lived since every rally has been sold and it may continue. The good news is that the market is correcting and now paying attention what is happening in the economy. That helps keep markets healthy!
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