📈 What Happened Yesterday?

Market Sell-Off

Yesterday we saw equities precipitously drop at 1:30 and continue to fall into market close.

This was a massive move downward and gave indexes bearish engulfings across the board.

So what caused the sell off?

Israel/Palestine

Yesterday Biden called for a ceasefire in Gaza and warned Netanyahu that if civilians in Gaza are not protected, the US will change its policy with regard to the Israel/Palestine conflict.

Nothing has actually happened yet, so this likely did not cause the sell-off, however the conflict does continue to exacerbate.

Kashkari Comments

Fed member Kashkari made a statement yesterday saying that if progress on inflation does not continue, it is possible they will not need to cut interest rates.

The market has been pricing in three rate cuts this year, which is bullish for equities. So if we do not see rate cuts, this significantly impacts stock valuations.

Economic Data

Today we have Non Farm Payrolls and Unemployment Rate data coming out.

Is it possible that one or both numbers leaked and the market reacted as a result?

Note that the market is extremely sensitive to interest rate data so you will need to pay close attention to this data this morning. Both come out at 8:30 AM.

Watch this video where I review what transpired and how to attack the day today: