Will This Bounce Hold? Did the market grow too pessimistic?… looking at the SP’s support and resistance lines … how the strong U.S. dollar might actually help your portfolio … Europe is bleeding investment capital Investors remain on edge after the Fed-triggered selloff on Aug. 26. The issues are the same as they have been all summer. If the Federal Reserve continues to raise interest rates and inflation stays high, then corporate profits will fall and eventually, the economy will slow. That comes from our technical experts, John Jagerson and Wade Hansen of Strategic Trader . Of course, as John and Wade quickly point out, knowing what’s behind the selloff is the easy part. The far greater challenge is determining how much risk and fallout from higher rates is already priced into today’s market. As we look ahead to the Fed’s September meeting, traders are putting the odds of a 75 basis-point hike at 86% as I write on Friday. We can see this courtesy of the CME Group’s FedWatch Tool. Source: CME Group If we look all the way out to March of next year, traders are putting 50.4% odds on the fed funds target rate being 3.75% – 4.00%.