As I mentioned several times, the Fed demonstrated to be tentative and too late. The credit problems (derivatives, debt of various types) have been accumulating and now (finally) captured the attention of the Fed.
The Fed is playing catch up. This is what the markets are sensing, and they do not like it. What the Fed lacked in timing -- policy makers were seriously behind the curve -- it tried to make up for in size.
Credit risk is still rising, and this is the bad news overhanging the financial markets. Other indicators we follow are still not giving the green light.
The Fed will have to keep easing until credit risk starts declining. Only then will the markets respond positively.
More on https://www.peterdag.com/.
George Dagnino, PhD
Editor, The Peter Dag Portfolio
Since 1977
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