Just when I am writing above that the market needs liquidity, action, and lay out the Fed possibilities, Powell disappoints – and we have a hissy fit. No new measures were hinted at – Treasuries on the long end turned lower, and pretty much everything else except oil, in a kneejerk reaction. Dollar is up on the inaction, and that quite explains what we're seeing…

The question is when will the Fed relent? End of 2018, anyone?

Here we go with the progress update 90min since the open:

intial selling pressure in stocks repelled, HYG undecided on a daily basis, through bond markets remain constructive. When will gold notice? Silver again making a recovery run, just as copper.

Who saw the great run in oil coming? I'm an oil bull as well, and featured an oil analysis in my yesterday's article - great to see the bullish conclusion confirmed this soon!

I hope you benefited :)

Quick update:

Morning selling pressure appears abating, stocks returning above 3,850, HYG apparently refusing to decline more, and if XLK keeps above 130 today, we're still in that now again shallow correction that I talked before Feb 24.

Gold refused to decline below $1,700 - but needs to clear off the low $1,720s (yeah, that's another $10 today still to go if I am to like the short-term bullish turn). Still nothing to call home about in the metals. The dollar better tank again over the coming days... Gold and silver haven't yet lost the recovery momentum, and the $1,730s and above $26.50 are attainable still. The bull market in gold needs a rebound off strong support, otherwise it's becoming suspect.

Looking at different tools, I have come to the same conclusion about rather good prospects of gold from now on. It'll take time to unfold, and we could start with a modest upswing today. Then, I don't think we're nearing an S&P 500 top. Stil,, PMs are too beaten down.

Yes, the meandering in stocks goes on, but I like the credit market performance thus far, and actually cautiously look for gold to surprise on the upside next - look how much of the intraday losses silver retraced already. Copper remains very positive, dollar very tame, and TLT treading water... That's a good setup.

Thank you, I hope you enjoyed the full article!

And what about calls for raising Fed funds rate perhaps even this year that you might hear thanks to the rising Treasury rates? As premature as the constant calls for significant (10+%) corrections. I haven't been buying these either in Jan, or Feb, and I'm not buying it in Mar. Besides, not that much time has passed since the last serious stock market correction really. And this correction's shape has been decided on Monday in my view, and it won't be even 5%...

Here we are, the smashing ride in stocks continues, and it paid off to ignore the corporate credit markets this time... Silver keeps running, yet commodities and gold retreated a little - but the dollar isn't surging. Telling signs...

Yes, the dip was really hard, and an important support has been reached. Reversing, gold is being pulled by silver, copper and the rest of the crowd to a degree. I though look to the real rates, which are still deeply negative = fuel for gold. Much to talk in the precious metals really...

POST-FRI SUMMARY: The shape of the correction is being decided still. Tech missed a daily chance to reverse, IWM held up fine, EEM including its bonds are momentarily more pressured. SPX is in the middle, I didn't like the weak Fri finish across the board, but.stimulus cleared the House hurdle after the market close. While Fri didn't have the many hallmarks of a reversal, stocks are likely to like the TLT turn = again, this is a dip to be largely bought in my view. Just as gold or silver would welcome the Treasury yields reprieve - real rates are still around 1% negative = positive for gold.

TLT has indeed turned higher, and HYG appears wanting to repeat its yesterday's price action feat. When would gold and silver notice? VIX predictably down, XLK at 50-d MA only. SPX closing above 3865-70 would be good for Moday.

Great weekend everyone!