But some of those FED addicts may hope for it.
All of us others let’s be prepared for any outcome and make our trades accordingly.
Those who hope for Yellen saving the Trend will be probably disappointed tomorrow and even if the Market shows us some push, I believe, we are way beyond any trend repair. It would take an enormous push or a constant growth to reverse this trend.
And unfortunately, there is no catalyst out there for a push or a constant growth. So even if we jump higher, such bounce will be sold off. And I will do the same if that happens.
Here is a reason for my bearish stance:
This is a chart from the beginning of the month (February). The magenta lines indicate a Regression Channel. The small dashed lines are my own projections. At the beginning of each month I align them with the magenta regression channel lines. This was January alignment.
As you can see, over the January course, the regression channel sloped further down, away from my dashed lines clearly indicating that the bear market is deepening. To repair this market, we would have to rally above 2050 and stay there for a prolonged time to start reversing the channel into upward sloping one.
But there is no strength in the market to do that. As of now, our best shot would be a relief rally to 1940 before we sell off again.