The market once again failed to produce a decent oversold bounce. There was a little early strength, but it fizzled out as interest rates continued to rise and an endless parade of Fed members spouted what I believe amounted to useless comments.
The S&P 500 is now down six days in a row and nine of the last 11 sessions. It is understandable that traders are looking for some sort of relief from this steady pressure, but that so many seem to think that it is inevitable is making it much harder. As soon as there is any sort of strength, short-term flippers hit it, and shorts remount some positions. There is no fear of missing out, because there is no decent sustained momentum.
The major headwind is interest rates. The 20-plus Year Treasury Bond Fund (TLT) saw its losses accelerate to 2.7%. This undercut support last seen back in 2013 and takes it to the lowest levels since 2011. There are no indications that rates are going to slow anytime soon, and the market is struggling to figure out what the economic repercussions are as we see levels that have not been seen in decades.
The market is due for some sort of counter-trend move soon, and traders are going to remain focused on trying to catch it, but in the bigger scheme of things, there isn't much to do right now except wait for the bear market to continue to develop and eventually resolve itself. I'm optimistic about all the great opportunities that are developing, but I see no reason to buy them at this point.
Have a good evening. I'll see you tomorrow.