Powell spoke, and the algos weren’t too happy with what they heard:

“We are attentive to recent data showing the resilience of economic growth and demand for labor. Additional evidence of persistently above-trend growth, or that tightness in the labor market is no longer easing, could put further progress on inflation at risk and could warrant further tightening of monetary policy.”

Stocks tumbled again, closing in on our next downside target from last week.

continued for members…

Note that VIX’s SMA10 is back above its SMA20. It was a pretty good head fake.

This brings VIX to the top of the rising red TL which has halted several previous rises (drops in stocks.)Currencies remain fairly quiet, though the DXY could soon get a boost from the yen but come under pressure from the euro if the 60-min chart’s channel breakout finally occurs.

Gold’s breakout continues, setting up another test of the 2022 highs, while SI continues to push against our backtest target.

Oil and gas remain surprisingly constrained – no doubt central banks’ doing. TNX is off just a little – perhaps responding to our red channel top?

SPX/ES still appear likely to test their SMA200s (just missed them last time.) But, if VIX should break out, USDJPY break down, or the US be drawn further into the Middle East conflict, the SMA200 could easily fail.

Stay frosty…