Market Sell-off Triggered by Jerome Powell’s Hawkish Tone

Dr. Jerome Powell, once again, is becoming extremely hawkish, causing the dollar to skyrocket and most assets to sell off. Now, the S&P 500 and the stock market are sitting at a very, very key level. So, we’re going to speak on all those in much, much more in this video. Make sure to watch to the end because I’m going to highlight a few key charts at the very end of this video.

If you don’t follow me yet on Twitter, go ahead and check me out @JeffSekinger so I can draw on there. We post really valuable threads on there all the time about what’s going on with these rate hike CPI data and a lot of macro data as well that are really key to making intelligent decisions. As far as what has happened this week, again, Jerome Powell, Mr. Doctor, has once again become pretty hawkish, causing, and hawkish means that hey, inflation is bad. It keeps hinting that it’s going to take forever to come down to two percent, which is their target and saying that now if the economic climate is supporting, they’re going to continue to increase actually rate hikes back up to 50 basis points and they’re not going to be slowing down the hikes until it starts to roll over.

And when I say “it,” I’m talking about inflation, so they are hinting at that. Now, the market is actually projecting a 50% chance that they will lift interest rates by half a percentage point later this month, which would not be very bullish for markets. Again, that tightens credit markets, it makes debt more expensive, so people borrow less money because it’s more expensive, and then after people borrow less money, they spend less money. Businesses make less money, and most of the time, cash flows come down, and then equity prices and ultimately a lot of other assets will come down.

You see that in real estate as well. You know the 400k house if you’re going to buy that about a year ago. Now you can only buy a 250k house, which is obviously quite insane. If you haven’t followed me on Twitter yet, go ahead and check me out at Jeff Teckinger on Twitter. The dollar is once again rebounding off of this key level, which was previous resistance, now flipping it into support. We’ll see. I would not be surprised if we come back up to the high 107s. Now, let’s go ahead and check the S&P 500, which again is at a really key level, and the reason why is we have this broadening descending wedge. Okay, this entire year, practically now, one of the key zones that I am watching is 42.75. So that was where I believe that we were going to get rejected for a slight correction, but we actually had it a little bit sooner than we had that correction, probably because Jerome Powell once again becoming…

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Jeff Sekinger

Jeff Sekinger Founder & CEO, 0 Percent Who is Jeff Sekinger? Visionary Trailblazer Sekinger has been in the financial industry for over a decade. Starting

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