It’s not unusual for the market to go the exact opposite way the day after the FOMC gathering, but that doesn’t ease the pain today. 

This is a no confidence vote, and a message to Powell, that maybe, the better part of valor would have been to go big yesterday rather than trying to have it both ways.

The ten-year bond yield over 3.00% is also contributing to today’s rout, but it’s a symptom not a reason.

Another Miscue

There is a lot of turmoil in the world and citizens are looking for elected leaders to make smart decisions.  These days, in the United States, it’s not just the Federal Reserve that’s dropping the ball, but the administration’s flip-flop on the strategic petroleum reserve underscores a huge problem.

No oil should have even been released:

• There was no emergency (except falling polls)
• We have an abundance under our feet

With all policies geared toward favoring progressive ideology, President Biden has missed huge chances to do his job without bending toward partisanship. 

There is a growing malaise and frustration in the country that will only exacerbate an economic slowdown that appears to be in the cards already.

I really wish the White House would see this and pivot toward it positively and call a truce on its war on energy, corporate profits and anyone with different opinions.

Market

I think the market is significantly oversold and this is a flushing of those last “strong hands” that will leave and vow to never come back.

The S&P 500 continues to hold at key support – that what these key support points are for - they have to be tested.

I cannot overstate just how many bargains there are out there.  They lie in the ruble of the pretenders.