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DashOfInsight<>Weighing the Week Ahead: Will a More Aggressive Fed Spark the Long-Awaited Correction?

Sept 17
old prof

We have a light calendar for economic data. The week’s focus will be the FOMC policy announcement on Wednesday. Given the resilience of the market rally in the face of various natural and human threats, the punditry will turn to a favored topic. Expect people to be asking:

Will the Fed be the catalyst for a market correction?

Last Week Recap

My expectation for last week was only partly correct. There was plenty of competing news and not much optimism about a market-friendly legislative agenda.
The Story in One Chart

I always start my personal review of the week by looking at this great chart from Doug Short via Jill Mislinski. Monday’s big rally was sparked by the weakening of Irma and lowered damage estimates. After some follow through on Tuesday, the market was flat for the rest of the week.



Doug has a special knack for pulling together all the relevant information. His charts save more than a thousand words! Read the entire post for several more charts providing long-term perspective, including the size and frequency of drawdowns.

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http://dashofinsight.com/weighing-the-week-ahead-will-a-more-aggressive-fed-spark-the-long-awaited-correction/