The week got off to a raucous open when the Biden Administration confirmed the renomination of the Reverse Repo Man himself, current Fed Chair Jerome “Jay” Powell. The NASDAQ 100 Index was leading the pack early in the day but eventually lost traction and reversed into the red, leaving the Dow at the head of the pack by mid-morning.
By the end of the day, the S&P 500 and NASDAQ Composite Index had both pulled ugly outside reversals to the downside, with the NASDAQ’s reversal looking particularly nasty. Powell’s comments about dealing with inflation during his acceptance speech were cited as the catalyst for the sell-off. Based on the look of things over the weekend, however, the market was already flashing warning signs.