The expected rate hike came along as expected, but the lack of details from the Fed sent markets into a bit of an afternoon swoon… which served to blow off some much needed steam as SPY logged its first volume distribution day in June. The Nasdaq, however, still remains untouched by high volume selling, going back almost a month now. The house of cards that mostly retail investors built since then has been almost completely taken down and perhaps on Thursday, it’s the smart money’s turn to finish the job.
A pullback in the near term does seem likely, but with TVO slowly creeping up towards zero, the bear argument for the start of a longer term correction is still on the side of wishful thinking. If they do manage to finally get in a few consecutive red days (the kind of thing that really hasn’t happened since before November of ’16), those wishes could quickly get much closer to reality. -MD
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