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Takeaway: Bets continue to mount on a dovish Fed meeting…

Here’s a quick, general market observation: the U.S. stock market looks increasingly suspect heading into Thursday’s Fed meeting. (I can get you to 32 VIX, no problem).

Question: What if people start reading "bad" economic news as bad?

McCullough: Quick Thought Heading Into Thursday's Fed Meeting - Fed tightening cartoon 09.09.2015

If the Fed goes dovish (they should), our omnipotent policymakers will have to tell the truth about a slowing economy.

That should scare people.

On a related note, the US Dollar Index closed on its low for the week (down -1.1% ). What’s most interesting about that is that on 30-day correlation, the S&P 500 has a POSITIVE correlation to USD of +0.8.

In other words, a dovish Fed could be bad news for stocks.

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