I see two paths to market action this week:
Monday and Tuesday fell sharply. Rebound after rate hike path announced on Wednesday
Stop the fall tonight, rebound tomorrow. Wednesday was up and then down.
I think Wednesday will bounce anyway for two reasons:
1. The market plunged ahead of schedule in anticipation of more stringent monetary tightening. So if Wednesday's rate decision does not exceed expectations, the market will bottom out and rally.
2、$Cboe Volatility Index(VIX)$ is the market's best feedback on fear. When the VIX hits 36, the market rebounds. Today's premarket VIX is up to 33. It can be found from previous observation that the faster VIX rises, the faster it falls back, especially if it exceeds 30 in one day, it can quickly bottom out.
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