Last week I used a chart and pondered the implications from a technical perspective going into the President’s speech Thursday evening. Since then I’ve updated and commented on its more recent machinations. So, it’s from that standpoint I post the following, which is the S&P 500™ E-mini futures at around 8:00am EDT, before the day session begins in earnest here in the U.S. To wit:
As I made note ahead of the President’s speech – this is not a “good look” coming from the “markets” preceding such an important conclusion of the FOMC (Federal Open Market Committee).
Should Mr. Powell disappoint this afternoon, things could get real, and real fast, if you catch the drift. What could propel the misstep is what is transpiring in yields across the bond spectrum. i.e., they are rising and rising fast, also, ahead of Mr. Powell’s presser.
This is not a combination sporting confidence by any means. It’s precisely the opposite.
Now, here’s the real issue for Mr. Powell…
With $1.9 Trillion in stimulus hitting personal bank accounts this week, combined with the now imminent flush to State, pension and other assorted coffers. If the “market” takes the Fed’s signalling negatively? All, repeat, all, the blame of any potential sell-off or other associated negative connotations will be laid directly at his feet, perpetually.
As always, we shall see. But, to that, I will also say…
Good Luck Mr. Powell, you’re gonna need it.
©2021 Mark St.Cyr