The Fed have gifted the bears

US equities ended the week on a very negative note, and it has become clear to many that the US Federal Reserve have once again completely mis-judged the situation. With concerns over recent market weakness, the decision to not raise rates has meant the market remains in uncertainty mode... higher volatility is here to stay.


sp'weekly1b

VIX'weekly

Summary

It has been a long week... so this shall be short.
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Suffice to add.. it is indeed utterly ironic that had the Fed raised rates, the market probably would have closed net higher today. Instead, we've seen a rather nasty reversal (3.3%) from 2020 to 1953... with VIX climbing from the 17s to the 23s.

In many ways, the decision of the FOMC has kept open the door to a rather huge October decline.. not just in the US equity market.. but across the world.

*I hold no positions across the weekend, but will be looking to build short-side positions across next week... seeking broad equity weakness into mid Oct'

Goodnight from London
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*the weekend update will be on the US weekly indexes