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Alert: During Wednesday's session, conditions were met to trigger a Level 1 sell signal for the S&P 500. This is a tactical sell signal that brings a high probability of mean reversion over the next 10 trading days.
As equity investors continue to trade with faith in central banks' ability to defend against COVID-19's growth-hampering effects, bond market participants remain comfortable playing the opposite side of that trade. Since the Fed's statement on January 29th, the severity of the COVID-19 virus has escalated exponentially. All eyes will be on the release of the latest Fed Minutes this afternoon, for any discussion regarding possible virus-related policy changes.