The Market got oversold on December due to negative sentiment. Concerns about US trade war with China, flat yield curve flattening and oil price collapsing and a misinterpretation from the market on what Powell said about raising rates regardless of what was going on weighted on sentiment. Powell then talked again and he said that he was data dependent. The Bank of Canada said the same recently. That provided relieve to the market. The preliminary holiday sales estimates indicate that it was a strong season. Unemployment is still low. It is too early to say.

The worries of the US-china trade war, interest rates, and the flat yield curve–all had a part in crating this sentiment, and then we had a massive over-selling in December. The relief, both in Canada and the US, was that raising rates would be data dependent.