The market is showing impressive resilience in front of Jay Powell's speech tomorrow and the suicide bombing in Afghanistan.  Four marines have been killed.  There is a good chance we could see increased selling into the close.

It may have less to do with Afghanistan than the Fed eventually pulling accommodation, but the malaise casting a darker shadow over the nation doesn't help the market. 

Meanwhile, the Fed will not yank accommodation.  On the contrary it will be done so gently, that if we were not so myopically focused, we probably would not even notice.

In the case of both Afghanistan and the Fed, the financial media is laying it on thick...we know crashes of any type sell newspapers.  For humanity's sake, and the safety of the world, we must pray for the safe passage of people trying to get out of the country.  Then we have to hope it doesn't become a base for terror attacks.  

Personal Income and Spending

All eyes are on Jay Powell tomorrow, but I think the real market moving news could be from personal spending and income data.  Savings have come down, and credit card spending is increasing, and was up 11% from the typical pre-pandemic level at this time of year.

American households have very manageable debt service costs and many still have more money than normal in the bank. But with less money being printed, its important folks go back to work.

Meanwhile, I suspect consumer sentiment will rebound as the Delta variant starts to fade.

No need to panic, even if the market starts bouncing around more.  Stick to underlying fundamentals.