MBCC Trading Highlights 28th October'22 - everyone wants a pivot, but is the data giving the Fed the chance to do so?

The above chart shows how the S&P 500 is stuck in the same range. It has to break > 3850 and then 4100 to be in an uptrend. For now the markets are obsessed with the fact that the Fed will turn more dovish into next week’s FOMC meeting. Following Canada and Australia, there are whispers that perhaps Fed may signal less hikes going forward. The Dollar has fallen, Bonds rallied, and risk assets rallied as once again market expects some positive news. Once again as we rally into yet another FOMC, what is the broader landscape telling us? What is the trade here in cyclicals vs. duration assets?