Omi-what?

Mid-week market update: The most recent stock market downdraft was sparked by the news of a new virus variant that was initially identified in South Africa and the Fed's hawkish pivot. As evidence emerged that Omicron is more transmissible but less deadly, the market staged an enormous rip-your-face-off short-covering rally. Today, Pfizer and BioNTech reported that lab tests showed that a third dose of its vaccine protected against the Omnicron variant. A two-dose regime was less effective but still prevents severe illness. Here we are, the S&P 500 is within 1% of its all-time high again.

Omi-what?

In the wake of the relief rally, the bulls still face the challenge presented by next week's FOMC meeting. The risk of a hawkish Fed still looms. 

Here are the short-term bull and bear cases from a chartist's perspective.

The full post can be found here.