Facing Damocles Sword

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S&P 500 confirmed the daily outlook yesterday, and did really well. The signs before the close also favored bullish entry into today. VIX kept declining, UVXY confirming – no surprise that the bears were weak intraday, and likely would first have to deal with a spiking stock market before we see a repeat of the latest Fed minutes release (daily stall followed by reversal). CBOE put/call ratiois not too much out of balance, favoring a nice move today. USD is uncovincing given the delicate balancing the Fed has to do while still appearing (and crucially acting) resolute. Tough job to regain infl…

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