$SPX $SPY +1.3%. Getting the bounce we needed in large caps. $QQQ +1.1%
The weakest of the three caps were the large caps, $SPX $SPY today that merely rose within the prior consolidation, while both $IJH mid and $IWM small were bouncing off their lows out of the range of the low just made. Large caps must catch up tomorrow. The USD moved up today as the market is believing that the Fed policy shift is going to eventually raise interest rates and support USD strength. That's one theory. A stronger USD lowers US inflation in terms of foreign good costs, but hurts our ability to compete abroad, which impacts multinationals more than smaller, less global firms. (If Congress ends up spending lots of USD in the legislation under consideration, the USD could reverse lower.) Large cap in the heavily tech weighted $QQQ did better than large cap SPX (with less tech) as QQQ did clear the base just formed, although not by much. Large caps in general need to move up further tomorrow, and $VIX and $VXN need to continue to burn off to continue the bounce. 2/2
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