It has been about 22 days since the long RiskOn market sentiment break. The market has switched to negative RiskOff sentiment that has been lacking balls (weak negative sentiment) since it started.
We can conclude that the market has been pretty much digesting further deterioration in US inflation throughout the RiskOff wave. Yesterday’s highly anticipated FOMC did not bring much change and so market sentiment continues to move sideways in a lackluster manner with no clear trading signals.
You can read about indistinct sentiment here. We can expect this trend to continue until tomorrow’s NFP. The market would breathe a sigh of relief if the NFP number drops below 200k. That would suggest that the market will deliver the top the Fed wants and the path to the first CUT would look much clearer.
But we got Apple’s results ahead (after market’s close). Expectations are quite low (especially based on interim results from China sales) and the stock might surprise rather than disappoint.