We can see below on the Cumulative Ticks that selling has been continuous.
Growth sectors (NQ8, IPO, ARKK) are all in short mode now.
The only positive sector is the gold/silver miners,
even though gold itself is in a strong bearish move.
The NHNL indicator is slowly deteriorating but does not display a flush type of pattern that usually precedes reversals.
We can see below that the yield comparison between asset classes tells us that equities are now getting closer to their upper limit of $4200.
This indicates that a bounce has limited room to go from here, while there is still room for more weakness. Note that the dotted Red line shown below has in fact only entertainment value.
Conclusions:
Until the FOMC announcement of next week, the market will trade in anticipation.
One scenario could be to see weakness going into the announcement followed by a relief rally even if the Fed raises rates again by 0.75%. Investors will then start focusing on a possible end of the Year rally.
