Powell’s comments were somewhat hawkish, but the algos swept in and crushed the initial pop in volatility, driving VIX back below its 200-day moving average……in order to preserve a gain, which prevailed overnight.

A 32% plunge in VIX to preserve an 8-pt gain in SPX? Sure, why not. It’s the end of the month and we have poll numbers to prop up.

continued for members…The market still looks like it’s on shaky ground.

The currency picture still suggests more DXY strength.

And, nothing has happened in the oil markets to suggest an improvement over the pop we expect in Jan CPI due out on Feb 12.

If the 10Y holds its trend line while the 2Y continues to fall, the equity markets could be in real trouble. Judging from GC’s continuing rally, I’m not the only one with this view.

GLTA.