A Mini-Test for the New Fed Chair Today
Fed Chair Speaks to the Senate
Today Chairman Powell gets grilled by Senate members. To me it will be important to see if he tells the same story and is consistent on the question answers compared to his presentation to House members on Tuesday.
The Growth / Inflation that he believes in at the moment appears to be on the front burner for the markets in current action.
It is interesting that former Chairman Greenspan on CNBC this morning seems to believe that we are moving into stagflation and he feels the Bond Bubble is the biggest problem. It follows in his chain of prognostications around exuberance. For me, I always thought bubbles were something you can see through, a lot of air. The current Bond situation is very opaque, more like a tornado of five trillion dollars swirling around.
The short term volatility this week puts most of the emphasis on the weekly S&P charts. A close this week below last weeks low of 2681.6 would provide an ominous outside week, higher weekly high, lower weekly low, with a weekly close below the prior weeks low.
The dollar index DXY seems to be drawn to a test of the high of the September 8 2017 low week of 91.51. That level should provide a lot of resistance. So we will be buyers of gold around current levels.
Late Post at 9:25 AM CST