But will the Federal Reserve shoot it like an escaped lab monkey in Pennsylvania at 2 p.m. Eastern today?
Time will tell.
The markets have been roiled ever since QT was announced by the Fed via its minutes at the first of this month and there is no reason to believe that the Fed can pull back on this due to the trap it set for itself with the insane monetary expansion and now embedded inflation within the US economy.
As of 5:15 a.m. Eastern here is a snapshot of the US futures via Investing.com:
Obviously it is early and any market action before the Fed announcement is to be taken with a grain of salt as volumes will be light UNLESS the Fed member banks already know what is about to happen. Based on the action on Monday when the kamikaze hedge funds rushed in to BTFD, they were selling into this rally as the new high/low list reflects (via the WSJ):
IF the Fed announces an accelerated schedule for quantitative tightening today that rally monkey will puke like a 37 time boostered Covidiot. It also means that the Core PCE price index, which will be reported officially on Friday, is going to indicate a potentially systemic problem with accelerating inflation. The Fed will already have this data and will move accordingly which means that there could be a liquidity shock to the markets once again between today and Friday.
So please lower your lap and shoulder bar as this roller coaster is about to take off again.