The market has displayed a fair amount of spunk today. Everything looked like there could be a noticeable move higher, before the effort runs out of gas.

S&P 500 One-Day

And now, the Street is listening to Jerome Powell, and thus far, it is not happy with his comments. Bond yields immediately spiked.

Ten-Year Yield

His initial comments left a lot to be desired.   Mostly from the ‘you don’t say’ category. 

The spike in yields caught his attention. 

If we see inflation, we will be patient.

Inflation is set to rise but it will be temporary.

The economy is unlikely to see maximum employment

Maybe Powell is challenging the market and investors to have a temper tantrum, because he hasn’t offered any of the things many hoped for.

Please do not forget about the economic backdrop, which is amazing.  Nobody likes increased volatility, but these air pockets happen from time to time.

The big test now is to somehow avoid sharp selling into the closing bell.