The day even started positively for the Bulls, with investors optimistic about the sentiment of consumers who continue to spend considerably, thus sustaining economic growth, as shown by the results of some major retailers. But buying pressure didn´t last long, as shortly after opening and after it was known that manufacturing activity contracted for the first time in the last decade in the US, indices fell sharply on fears of a recession on the horizon.
Again it was the reversal of the 2Y and 10Y yields that set the tone for the turnaround in sentiment, because from the FED minutes and comments from some members of the central bank board signals are somewhat contradictory. Now is not a certainty that Powell will announce a new cycle of short-term interest rate cuts. From a technical point of view, highlight the 200-period moving average on the S&P500, which may offer short-term support.
