Stocks and Precious Metals Charts - From Fear to Greed - Powell Sparks 3% Relief Rally Off Second Low

Fed Chairman Powell sparked a 3% rally in a relatively listless post-decision market by essentially taking a 75 bps interest rate increase off the table, and suggesting that the bond market was already pricing in the extent of their 50 bps increases for this year.

Powell tossed the markets a bone, and they reversed in a big, big way.

VIX plummeted.

The dollar dropped like a rock almost 100 bps.

Gold and silver rallied.

China comes off a four-day national holiday tonight. This may liven up the precious metals trading there.

So the long and short of it is that the stock markets dithered their way to form and test a second low and then rocketed off that bottom in a relief rally.

Wow, who could have seen that coming.

Let's see how the Non-Farm Payrolls comes in on Friday.

A weak number may reinforce the dovish stance. A strong number will not.

And a lukewarm number will just provide another backdrop for more wise guys gaming the system.

As the fellow from Goldman was urging people this afternoon, it's time to take those cash savings out of your bank accounts and pile them into the risk markets.

Yikes.

I have marked the place on the stock index charts where bully needs to be to take the CrashTrak model off the table.

Have a pleasant evening.

(Click on image to enlarge)