The market leaped out the gate on amazing news on retail sales and looked to be on its way to another monster session, but it hit a couple of bumps in the road.

It all began when Fed Chair Jerome Powell began his testimony and question and answer period from a bunch of Senators with their own agendas.

Jay Powell said one thing that might have let some air out the rally and something that might help the bull case.

At some point early in the conversation, Powell said the Fed would keep rates at this level until “we are confident,” which is different that the two-year automatic pilot articulated last Wednesday.   Later, he reiterated they are not thinking about hiking rates.

Powell also mentioned the economy coming back if the virus was under control, which seems different than the Fed hymn sheet that said economic recovery was impossible without a vaccine.

By the end of the hearing, the rally regained most of its momentum as Powell was able to achieve his goal of nudging Congress toward more fiscal assistance.

Housing Rebound

The NAHB Housing Market Index surged 21 points to 58 in June and would have been higher if not held back by buyer traffic, which is still legal compromised.

• Headline 58 from 37
• Single Family 63 from 42
• Six Month Expectations 68 from 46

NAHB

Retail Sales

The May retail sales number was remarkable, coming in at 17.7%. The pent-up demand from Covid led consumers on a buying spree as economies started to re-open, resulting in $485 billion in receipts, the largest gain since 1992. -39.4%

Watch the close to see if earlier session highs are taken out…the fear pendulum is squarely in the realm of not missing anymore of this rally rather than losing rally rather than losing one’s shirt.