Potential relief bounce expected, US government may shut downđ
Looking ahead, we might see a relief bounce into month-end as we saw with the SPX yesterday, and a variety of short-term technical indicators are flashing oversold signals across both bonds and fixed income. With that being said, we think the only suitable positions for the current market are simply flat or short, and knife-catching to be an exercise in futility. Furthermore, the US govt does appear to be heading into a partial shut-down as early as this weekend as the GOP does not appear to be able to come up with a consensus, adding significant uncertainty to a market that is already reeling from a maelstrom of unfriendly macro forces.
