Bond Selloff Forces FED To Pivot Sending Stocks Higher

US stocks saw a major rally on Friday, after being down by over 1% in futures markets, as bond yields continued to rally on Fri. This was before news leaked by the FED of a slowing in rate hikes going forward is being considered.

I cover why did the FED make this announcement on Friday, with the lead up in problems showing in the financial system globally, including BOE, SNB escalating liquidity injections.

In addition I show the issues domestically in the REPO market in US, where the banks are requiring assistance to settle overnight accounts, as credit risks are rising among the banks.

Are we following the 2008 crisis once again. I discuss the chart similarities & red flags in the system.

Lastly have a look at SPX charts & what levels to look out for this week if we see a counter rally, given its a blackout period from the FED, before the FOMC meeting on the 1st & 2nd November.

Links:

https://www.cnbc.com/world/?region=world

https://www.zerohedge.com/markets/stocks-spike-after-wsj-fed-whisperer-hints-pausepivot

https://fred.stlouisfed.org/series/RRPONTSYD

https://www.fxstreet.com/news/fed-to-debate-on-whether-and-how-to-signal-plans-for-a-smaller-increase-in-december-wsj-202210211316

https://www.zerohedge.com/markets/fedspeak-yentervention-spark-buying-panic-bonds-stocks-gold

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