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IPFS News Link • Stock Market

Market Stumbles As Rising Rates Undermine Outlooks

• https://www.zerohedge.com, by Lance Roberts

"Currently, the money flows remain positive, but 'sell signals' are firmly intact. Such suggests downward pressure on prices currently.

We do expect that market will likely muster a short-term oversold rally next week. However, the risk of a continued correction in March is likely if money flows deteriorate further. It is advisable to use any rallies to reduce equity risk and rebalance allocations accordingly."

While we did get the expected rally on Monday, it immediately reversed. The middle of the week was rather brutal to the previous "momentum" trade. Such did not give investors much ability to rebalance without "panic selling" the low, which occurred Friday morning.

The good news is Friday's mid-morning reversal did manage to keep the S&P above the 50-dma support level and money flows positive, albeit just barely. While the money flow index deteriorated further this week, and as we suspected, it is now rather profoundly oversold.

While we did get the expected rally on Monday, it immediately reversed. The middle of the week was rather brutal to the previous "momentum" trade. Such did not give investors much ability to rebalance without "panic selling" the low, which occurred Friday morning.

The good news is Friday's mid-morning reversal did manage to keep the S&P above the 50-dma support level and money flows positive, albeit just barely. While the money flow index deteriorated further this week, and as we suspected, it is now rather profoundly oversold.