Economics and fundamentals will drive the action in the longer term.
Control, or at least the illusion of control, is everything to the central bank now.
The most likely scenario playing out in Q2? Lower entry points will be available for the prudent and patient.
What does the Fed do this Wednesday afternoon? Do they commit to keep on fighting inflation? Or do they try to prevent some kind of economic catastrophe?
The Fed is being forced to help banks and put its battle against inflation on hold.
There's only one thing I really hate here.
As my late banker father liked to quip during these types of financial hiccups: 'There is never just one cockroach.'
In signs of economic progress, two indicators that stubbornly have refused to budge are rising.
Does the Fed end up fighting inflation? Or does it pour kerosene on the fire in order to prevent some kind of economic armageddon?
There are three ways to look at this volatility.