July 2022 Powell "Put" holds. S&P 500 rallies on the back of further mispricing of stagflation/recession and Federal Reserve's uphill fight with inflation.

It is kind of bemusing which ever angle you look at it, that the market has been mispricing a crisis from the get go.  One could blame HFT systems, for being algorithmically programmed that the Federal Reserve  will always be dovish on the back of over 20 years of loose monetary policies, but the reckoning is here, with supply chains, war, climate change and a so called Covid post-pandemic (till winter the next mutation) which has slammed into the global economy.  The markets are over juiced with information and bullish predictions that is siding with its greed trades.  It maybe sorely  disappointed.  The once disconnect of the fundamentals of global economics and financial markets maybe narrowing to the point of implosion.  In the meantime.

On the  8th September the S&P 500 bounced off the  the  Powell "put" at 3698, regaining all the 26th August losses from the sell off, with eyes on the 4189 resistance.  From all perspectives this looks like the play on a bull trap. 

A -2% sell off brewing?  Refer to the chart above.