Higher than expected CPI inflation data this past Tuesday before the open jolted interest rates, especially the 2-year Treasury, sharply higher and pushed stock and bond prices sharply lower. Speculation abounds that the Fed will raise rates by 1% (or higher) at the conclusion of its meeting next Wednesday, September 21.
There is no doubt that the Market's long-term trend continues down or Bearish. The Market has given back about two-thirds of its gain from the June low to the August high and may test its June low.
Near term, this down-move looks overdone. We see some signs, notably positive divergences between daily indicators and prices, that we may see a bounce up in the next few days.
Market prices are likely to tread water next week until Wednesday's rate announcement and how the Market interprets Chairman Powell's comments.