Powell is likely to run into more aggressive testimony in his second day of congressional testimony.  Few House members rake in campaign contributions anywhere near as large as the average senator.

Markets are generally quiet, especially after all the intraday damage control seen yesterday.  If he should stumble, of course, there’s a lot of dead air below current levels.

continued for members…

So far, ES’ SMA10 continues rising towards it rather than any serious breakdown.  Though, the little H&S pattern aligns nicely with the SMA200.

SPX has broken down, though the damage has been rather limited thus far.  And, we won’t rule out a bounce back into the rising purple channel. VIX was busy yesterday, dropping at all the right times.  It rallied slightly overnight and is now within striking distance of its SMA200.  Remember, yesterday’s overnight rally simply gave it a higher perch from which to decline during the day and prop up stocks. A push above 16.90 would be a legit breakout.CL and RB are rallying after strong draws in API data yesterday.  It’ll be interesting to see if EIA concurs at 10:30. We’re still on hold in currencies.  USDJPY never did break down, and is pushing up past its midline again this morning. EURUSD is still going sideways.And, DXY has held at yesterday’s backtest. On the bond front, ZN has given up yesterday’s gains and is threatening to backtest its triangle as TNX is coming up on the two month anniversary of going nowhere since its December lows.

And, last, GC is showing a little more weakness.  Although the red channel would be tested at around 1310, we still have that gap at 1303.70 to fill.More later…