Relief Rally?

Macro Market Summary Risk markets are likely to bounce into the Spring of 2019 as many markets are now exhibiting oversold conditions.  Does this mean we move directly higher from here? Not necessarily, while most of the downside for the short term is likely behind us, we are still waiting for confirmation the current correction is over.  It is important to stay nimble and defensive into February and March. TRI has been adamant the Bank of Canada and the Federal Reserve were on the verge of a policy mistake by continuing to increase short term interest rates into a slowing economy.  Lower global PMI prints, slowing trade and lower earnings growth estimates pushed the market to price in a 7% chance of March 2019 US interest rate cut.  Yes, a rate cut, not further interest rate hikes. The markets will likely force the central banks not only to the sidelines, but to eventually provide more stimulus. Market Trends TRI cannot rule out a lower low in the 2,250 to 2,300 range for the S&P 500 into February / March, before a relief rally back to the 2,800+ level into the Spring / Summer 2019 Government of Canada bond yields (and…

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