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So, the Fed finally grew a pair and for once, did not give in to the market tantrum as Powell left market participants to fend for themselves by well.. doing nothing.

WCRS 05-03

As much as the kicking and screaming may still continue, at some point, you have to wonder how much higher yields can go and what exactly is the Fed's breaking point?

Clearly, we're not there yet but unless there is appetite for yields to chase a disorderly move higher, then the relative uncertainty and jitters may start to abate.

The market is very much like a baby wanting the Fed to pacify it. But now that the Fed is choosing to Ferberize the baby, eventually the market will learn to adapt.

Given how the Fed is still pumping billions into the system and Biden's stimulus plan is on the cards, there's still good reason for dip buyers to take another shot.

That said, I'd be wary of extended valuations in tech and perhaps there might be more resilience seen in the Dow moving forward - that is if the market is sticking by this whole reflation/reopening narrative in the bigger picture.

Elsewhere, oil broke higher yesterday after the OPEC+ decision yesterday. This sees price looking to break above key trendline resistance and its 100-month moving average. Are we staring at a push towards $70 next? I wouldn't bet against that in the long-term.

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