NVQ - Market Rallies On Powell's 'Easy Money' Promise
- Stocks haven't made a lot of headway since the February peak despite a lot of volatility. But Powell's promise of continued "easy money" certainly didn't hurt.
- The question that financial markets wanted answering was just how much of a decline in asset prices the Fed will tolerate before providing reassurance.
- As seen over the last two weeks, dips continue to be bought despite overall price weakness. We also see relatively rapid rotations between the defensive and offensive market sectors.
- I suspect we may have some additional quarter-end rebalancing risk early next week.
- The dollar has been gaining strength this year on expectations of more robust economic growth. A break above the 200-dma could accelerate buying as shorts begin to cover their positions.
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Market Rallies On Powell's 'Easy Money' Promise