SPX 3385.49 -15.71 (0.46%)
The market wanted to go higher yesterday. It was The Little Engine That Could. It tried to pull toys (AAPL) and food, just like the book. Despite the AAPL opening unchanged and slowly sliding down hill, the S&P 500 said “I think I can, I think I can”, and tried to pull the index through resistance of 3425.
Then Jerome Powell came out, and the little blue engine broke down saying “I thought I could, I thought I could”. The minutes of the meeting were perfect, and more than the market could hope for. This did take the market above 3425 until Powell started to speak, and gravity became too heavy.
I don't get it. I really don't see how the markets could lower Bernanke, the world's foremost authority on depressions, and a guy who was the last to see us heading into a depression.
Janet Yellen was loved as well, with the exception of the time she sounded like Joe Biden and spoke without a coherent sentence. The following Monday, the market opened limit down. Yet, she was soon forgiven.
Powell, on the other hand, doesn't seem to get the same loving. Perhaps that is what happens when he was the Grinch Whole Stole Christmas in 2018 by trying to raise rates and causing a crash that last months. But who hasn't caused a crashed at the Federal Reserve? The crash in 1987 was cause by Greenspan.
Yet, is there no penance that Powell can do to absolve his sins and make him loved? Once AGAIN, when he spoke, the market goes lower. Typically, this is a 49-hour virus and we should be fine Friday.