Hawkish Powell again?

S&P 500 didn‘t take low core PCE cue – only at the very end of the session, it spiked almost all the way to 4,600. The consolidation within the island concept that I talked yesterday as my favorite one, remains in the play – but the bulls aren‘t off the hook this easily, for another trip even up to 4,545, is conceivable as yields are very slowly drifting up again – but don‘t expect them to get far.

I‘l keep you in the picture and positioned – today, well before the double Powell appearance, intraday clients benefited from more good calls in DAX. When in doubt as to which side of the market is very short-term strained, look at rotations. Full details for clients follow - have a nice weekend in advance, and get to know all the broadened services, it‘s start of the month, therefore ideal time to join and experience the results.

Let‘s move right into the charts – today‘s full scale article contains 4 of them, featuring S&P 500, yields, precious metals and oil.

Credit markets

Yields do hint at issues ahead which wouldn‘t spare Nasdaq. All it takes now, is failure of rotations to kick in, and 5-10bp increase in 10y yield more.