US stocks staged a strong rebound overnight after Fed Chair Jerome Powell ruled out a 75bps hike. In the post-meeting press conference, he clearly said in a rare fashion, “a 75 basis point increase is not something that the committee is actively considering.” Traders were swift in adjusting their expectations. Just a day ago, markets were pricing in 99% chance of a 75bps hike in June.
DOW closed up 932.27 pts or 2.81% at 34061.06. Immediate focus is now back on 55 day EMA (at 34276.20). A weekly close above this level will set the base for further rally back to 35492.22 resistance in the near term. Break there will bring retest of 36952.65 high. Overall, while corrective pattern from 36952.65 could still extend for while. The range should have been set in this case.
