Market Alert - Last Hour

The stock market reacted favorably to the FOMC statement but not so to the Chairman's press conference.

Powell noted that current rates are where considers very near to the real rate. Nothing wrong with that.

The issue is when he started making comments that ALL chairmen eventually make when in a hiking mode, comments about asset values. They make these to supposedly make their job easier by getting asset values to decline a bit. Specifically, Powell said "some financial assets are in the upper reach of historical ranges," This from a chairman who supposedly has disdain for forecasts. Perhaps he is just looking at historical facts and drawing his conclusions, but the market knows history and how the Fed overshoots. Hearing the chairman with the echoes from the past is not what it wanted to hear.

Thus the market is in a full sell mode right now with the effect snowballing toward the bell as everyone hits sell buttons. DJ30 has reversed 200 points, NASDAQ 68 points and no bounce yet.

We will see how positions hold support heading into the close, a close not that far away.

SP500 -8.28, -0.29%
NASDAQ -12.97, -0.15%
DJ30 -112.87, -0.43%
SP400 -0.84%
RUTX -0.39%
SOX -0.86%
______________________________________
Jon Johnson, Chief Market Strategist
InvestmentHouse.com

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