Russell 2000 Futures -20% More

RTY1! lost 50 EMA support and racing to 100 EMA quickly on weekly, looks even uglier on daily as the pullback looks to be gaining momentum.

Next level of interest would be another -20% decline.

Last time this severe of a retreat was realized was March to May of 2020. The recovery was rapid given unprecedented amount of federal stimulus to prop the economy up.

Stimulus is not an option in the face of sharply rising prices with persistent inflation starting to rip across all sectors.

Markets shrugged off initial Fed communications and FOMC 25 bps rate hike, clearly reflecting lack of belief in Central Banks' conviction.

More volatility ahead as recession lurks in the wings and stagflation appears likely without regime change.