The Stock Market was Bullish Even with the Fed Chairman’s Comments Today

‘Until the Job is Done.’  That is what Federal Reserve Chairman Powell said as to how long they will continue to use all the tools necessary and at their disposal to fight inflation.

The equities markets, which I use the SPY to represent equities in these educational articles, are continuing the bounce started yesterday.

It was pointed out and shown the SPY may be using the 390 price as a support level and with a continued bullish move higher today it is making the likelihood of that being the case.

Loosening Policy is not in the Cards

Powell, speaking at the Cato Institute, reiterated that the central bank will do what it takes to fight inflation. Furthermore, it was intimated that a pause in rate hikes or a switch to cut or start cutting interest rates is not going to happen anytime soon.

The financial markets do not like surprises, and it looks like based on the days action what he said was not a shock and the expectations are for the next interest rate hike will be another 3 / 4 of a basis point.

Morning Reports List

In Tuesday’s piece we posted the Unusually High Put Option Volume list of the Morning Report. In the event this bounce has more life to it here is a look at the Unusually High Call Option Volume list.

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