FED Chair Powell will gently try to walk back some of what he said yesterday, not the substance, but the tone, and will try to comfort the bulls with the promise that the FED will go slowly etc etc.
Expect the rally the resume once the 50-ma support holds. If that breaks then the next major support is the 2690/2700 zone. Below that is a rapid fall all the way to the recent low.
Powell’s first faux pas came quick
It looks like Fed chairman stepped on his message on rate hikes
".....So the Fed’s team was trying to put out a message that it wasn’t in a hurry to lift interest rates aggressively, no matter the passage of the fiscal stimulus in the form of tax cuts and the $300 billion-plus budget bill.
And yet Powell managed to do just the opposite.
Of course, it’s not an error of catastrophic proportions. That fourth rate hike, if it comes, won’t be for several months, and the Fed has ample time to walk back those expectations.
Still, Powell managed to slightly ratchet up financial conditions. And it’s proof that even someone with a resume as extensive as Powell’s can still manage to mess up when carrying the massive stick that the Federal Reserve chairman wields....."