I think we could be in for a massive market meltdown next week. Futures market are currently pricing in a 100 % probability of a Fed cut on Wednesday, which I don't believe is going to happen. The markets (except for yesterday) have been unable to sustain any rally. No one wants to step in and buy stocks while unsure of economic figures.
Microsoft (MSFT) blew out numbers and raised guidance saying they aren't really seeing the effect of a slowdown and the stock opened up 5% only to finish the day in the red.
To me, this signals total implosion. If the Fed doesn't cut rates, the markets won't be happy. If they cut rates again after the emergency cut only 8 days prior, it signals the economy must be really ephed. People need to get more bearish still, so I think we are going lower.
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