Jul 09, 2021
It took a day for reality to sink in but the market reacted to the minutes from the last Fed meeting. The key takeaway is that the Fed is talking about tapering, the only question is when they will begin. Based on the chatter it looks like the bias is sooner rather than later. The S&P 500 fell more than 1.5% at the low of the day on Thursday but managed to bounce back and regain half the losses by the close.
If the market can't regain its footing on Friday we could be in for more losses. The next target for key support Is still more than 1.5% below the current price action and the next major catalyst for the market will be earning season. That begins the next week with reports from the big banks. While the results will be important what the market wants to see are increased share buybacks and big dividend increases.