Let's be clear folks.
As we are enter a recession and companies lose pricing power, lay off workers, and the FED continues battle inflation.. There's massive downside risk associated with risk on assets. As you can see in the SPX chart there's a clear Broadening Descending Wedge pattern playing out (though bullish) with one more leg down to come on the weekly chart and Rising Wedge on the Daily. Gaps are present as well and need filling. Historically as well when the FED pivots and cuts rates, we have seen the majority of the time (excluding twice - Once during WW2 and the other is eluding me lol) the stock market take a massive downside move before finally bottoming. Remember it's all about probability folks. Take it as you will. Thank you for your time and feel free to leave comments down below.
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