Myles notes that the market is slow to react to tightening cycles as evidenced in the mid 2000's hiking cycle courtesy of @RobinWigg
Now as the FOMC statement approaches we have numerous macro technical tourists discussing how the Fed Funds Futures aren't expecting a rate hike here as if the market is all knowing.
Well if these Futures are what the market expects, and they're slow to expect rate hikes - this tells us where the risk is.
This is all very un-comforting given where the market is here.
Again, we'll turn back to the golden ratio fib extension from the 2007-2009 range in the S&P 500 via @andrewnyquist
Then we look at the NASDAQ Composite and we see it testing the 2000 high.
Where else would be a more appropriate spot for an intermediate market correction?
The risk is evident and it's no wonder why there was selling into the Fed announcement.
The people getting played today are those who expect anything. Going with the flow has paid and it will again.
Trade 'em well! Read and react!
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