5 reasons we expect stocks to rally post-FOMC (Wed 2pm ET). Technicals positive and hence, still "gas in the tank"

The video in this report is only accessible to members
The video in this report is only accessible to members
The video in this report is only accessible to members
The video in this report is only accessible to members

VIDEO: We see 5 reasons stocks rally post-FOMC, even if the Fed sounds cautious on the progress of inflation.

Please click below to view our Macro Minute (duration: 04:19).

The video in this report is only accessible to members
The video in this report is only accessible to members

The S&P 500 has been soft into the March FOMC rate decision, set to be released at 2pm ET today (3/20). While there are understandable reasons for being cautious, including the Jan/Feb CPI "hotter" than expected, and the fact that financial conditions have eased, we believe probabilities favor stocks rallying post-FOMC rate decision:

The 5 reasons to expect a rally are as follows:1. When soft into FOMC, rally happens 4 of 7 times2. Interest rates softening into FOMC = ST peak3. Market priced in “bad news”: Fewer + Later cuts4. Powell was dovish to Congress (3/6-3/7) = dovish5. Per Mark Newton: technical set-up positive In order for stocks to rally post-FOMC, there needs to be an element of either surprise or relief. To us, there is a little bit of both at play. Over the past week, John Bai (the other co-founder of Fundstrat) and I met with many institutional investors in Latin America, and yesterday we did several meetings including a fairly large multistrategy offsite. What is apparent...

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