What a run in stock markets.
The S&P 500 is up 35 points today, or 0.6%, in what’s on track to be the seventh day of gains and is only a fraction away from taking out the July all-time high of 5669.
So it’s a seven-day winning streak and running into major resistance. That’s a recipe for the Federal Reserve to disappoint no matter what they do tomorrow.
If they hike 25 bps and stocks fall, it will be seen as a sign they didn’t do enough and fell behind the curve.
If they hike 50 bps and stocks fall, it will be seen as a move that spread panic.
In a world where the Fed is a punching bag and perception is reality, that’s a tough hand to be dealt. The pressure will be on Powell to communicate at his best and guide markets to what’s likely to come next.
This article was written by Adam Button at www.forexlive.com.
