US stocks were shot up overnight after the surprised comments from Fed Chair Jerome Powell that interest rates are “just below” neutral. Markets took that as a sign Fed is nearing to a pause in the currency rate hike cycle.
DOW rose 617.70 pts or 2.50% to 25366.43. S&P 500 gained 61.62 pts or 2.30% to 2743.79. NASDAQ added 208.89 pts or 2.95% to 7291.59.
Treasury yields were mixed though. Five-year yield closed down -0.029 at 2.856. 10-year yield dropped -0.011 to 3.044. But 30-year yield rose 0.010 to 3.329.
The strong rally in DOW was rather decisive technically. 23997.21 structural support was defended again. And the range for medium term consolidation is likely set for now, that is, between 23997.21 and 26961.81. For the near term, 55 day EMA will likely be taken out as the current rebound extends. DOW could head to 26000/27000 region but we don’t expect expect a break of 26951.81 any time soon.
