The stock market continues to zig-zag ahead of the FOMC. We've seen a series of quick declines followed by impressive bounces. Ultimately, that kind of volatility exhausts the bulls but here's an important chart.
Bank of America today noted that during last week's 3.3% decline in the S&P 500, clients were net buyers of US equities for a third consecutive week. That included the biggest inflows since early December. It was led by institutional and hedge fund buying.
There's an idea out there that the Fed needs to kill the animal spirits in the stock market to bring inflation back into balance. I don't buy that but this is an indication that buy-the-dip isn't dead yet.
h/t @mikezaccardi
