Energy getting down to attractive levels after Crude violates $80

Chair Powell’s indication that the bias is still towards easing rates, along with a quicker tapering of Quantitative Tightening (QT) starting in June combined to send Treasury yields and the US Dollar towards lows of the day.  Stocks rallied sharply on this news and seem to be attempting to carve out a bottom.  This FOMC message clearly looks to be a more dovish message than the market was expecting, and Trends remain bullish from 4/19 lows.  However, it remains difficult to claim that a push back to March peaks has gotten underway.  I suspect that 4/19 lows near 4953 should hold on any backing and filling, while a rally back over 5123 should result in a quick move back to test and exceed 5265.

Overall, Wednesday’s drop in yields and the US Dollar coincided with a sharp rally in US Stocks off the lows of the day.

Technology failed to lead the rally off the lows, however; Communication Services, Utilities, Healthcare, Financials, and Materials all showed very good relative strength, and rallied more than +1.3% on the day.

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