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Did Powell put a floor under stocks?

Commentaries & Views

The relief rally looks to be in motion, with gold blowing through $1,875 on its way to $1,900, where it has found resistance overnight.

Silver rallied strongly as well, getting to $23.20. We were wrong on the pullback in platinum as the metal went on to test 4-digit territory yesterday before turning back to $985, where it currently trades.

Silver would confirm the rally has legs by realizing a close over the bottom trendline pictured below (it was rejected overnight).

Jerome Powell sent the relief rally in US indices into full motion with his clear confirmation that there will be no 75bp hikes; he did, however, confirm a series of 50bp hikes, which the market looks to have had already priced in. Did the FED save stocks? Or did chairman Powell just create enough slack for the usual slew of hawkish FED presidents to walk back, with contradictory guidance in the coming weeks? Regardless, it is very likely that the May 2 low on the S&P 500 will be a floor going forward, with bears having failed to sell through under the pressure of ongoing war, and a hiking cycle into economic contraction.

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