It’s the momentum of truth for Jay Powell & Co. The moment that has been brewing for far too long.  I am reminded of a quote by Dr. Frankenstein, who also had the unenviable task of reeling in a monster of his own creation:

“My courage and my resolution is firm; but my hopes fluctuate, and my spirits are often depressed.”

The Fed has telegraphed a 25-bps rate hike where will they go from here?

I think Powell will exude resolve, taking this window of opportunity to lay it on as thick as possible.  Remember, before the Russian invasion, it was conventional wisdom the Fed would kick off the rate hiking regime with a 50-bps hike.   Right now, gains are holding, but the tension is building.

Technical View

Major indices are still in their respective trading ranges, but the S&P 500 is creeping toward key resistance.  Volume is suspect, but it underscores the lack of commitment and conviction of rallies these days.