Bear Markets usually last about nine and a half months.
We’re well past that.
And Bulls are desperate for a pop.
Any pop.
Or any good news. Or anything that looks like good news.
Or anything that isn’t horrible news!
But the Bulls can’t seem to catch a break.
Today, Fed Chairman Powell started his testimony in front of Congress. Beforehand, the market actually ticked up.
That’s how starved traders are. They wanted to be ready for good news.
Instead, Powell lowered the hammer.
Inflation is worse than ever.
So the upcoming rate hikes are going to be worse than ever.
And, unsurprisingly, the markets have started to tank (as of this writing).
Will there be pockets of positivity in the face of more bad news?
Of course.
UAL has broken above its previous high and is remaining strong as of this moment:
UAL could make a run up to the $62 level.
But, absent some overt dovishness from the Fed, we’ll have to watch our setups and pick our spots.
It looks like the Bears aren’t done with us yet.
Happy trading,
Scott
