The stock market did follow the September cycles down, but the more important development is the decline in the US and foreign bond markets which fell below the 38.2% retracement levels of their respective entire 1980-2022 bull markets. The picture is the same whether we look at the JGB or the bund or in other international markets. It has been said that a break of the 38.2% level signals an underlying fundamental shift. My observation is that the shift may simply be in the perceptions of investors, in this case, from bullish to bearish. It is also a sign that rates are going much higher globally.
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