The sharp move down on Friday was not so surprising. The weekly chart pattern showed a three week test of the low set up and SPY dropped down to test this weekly closing low price. The news was not surprising and the market's sharp reaction seemed to be exagerated, but the three week test of the low came off as expected. It held and one can assume that the market will reverse and trend higher now.
The Wave structure is also consistent with a run of the mill correction. I've seen some correlations showing that when the Fed makes its first move with rate increases, markets tend to correct but then rally as the Fed raises rates. At some point though, the rate increases get overdone and the market reacts negatively.
No time is like the last and no one can predict anything with any accuracy however, Fed rate increases does not by definition mean a Bear market. While we do need a substantial correction from the excesses, wave structure indicates that there is more to come on the upside.
The Wave structure is also consistent with a run of the mill correction. I've seen some correlations showing that when the Fed makes its first move with rate increases, markets tend to correct but then rally as the Fed raises rates. At some point though, the rate increases get overdone and the market reacts negatively.
No time is like the last and no one can predict anything with any accuracy however, Fed rate increases does not by definition mean a Bear market. While we do need a substantial correction from the excesses, wave structure indicates that there is more to come on the upside.