When something can't rally on good news, it's destined to fall
Yesterday's Fed Minutes were the best possible antidote to stock market weakness. Equities are addicted to cheap money so when there was no hint of a hike in the Minutes, it was no surprise that a 20-point decline in the S&P 500 turned into a flat day.
At least it did for a moment.
But what happened next was telling. The stock market rolled over once again and finished back at pre-Minutes levels. That was despite the implied probability of a Fed hike falling to 38% from 45% in the Fed funds futures market.
At the very least, that was a sign that someone, somewhere was selling no matter what.
That's why how the market reacts to news is the best signal of all.
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By the way, don't call me a Monday morning quarterback, because he's what I wrote (and did) yesterday.
