Not a FED PIVOT but a hint of dovishness, possibility of even 50 bps next week and then in 2023 25bps.
Not a PIVOT, not a full-fledged PIVOT, but merely the suggestion of a reduction in hiked from 75bps to 50 and then possibly 25, and the Dollar down slightly from the highs in recent weeks.
The main reason is the higher probability of a recession in the US and even worse economic conditions in the rest of the world. And, of course, EUROPE and ASIA preparing for a difficult Winter.
Friday was a huge reversal - another rapid reversal, although not a violent one as the previous one.
BUT, these two reversals inform us of the HIGH PROBABILITY BUYING zones or reversal regions aka as LOWS or BOTTOMS.
YES, we now know BUYERS are waiting for those lower areas to engage in FOMO buying, and even more BULLISH is Friday's reversal zone is much higher than the previous one.
So then this is a sure thing? NO WAY!
ES 3800 is again a major resistance point, 3880 and then all the way to 4K.
And, the Russian Invasion of Ukraine and the worsening situation there, rumors of Chinese intentions to invade Taiwan, fears of tightening in the Treasuries market - not only in the US, and a weak global economy struggling to recover.