When the FOMC meeting statement was released, there were some jitters initially but by the end of Powell's press conference, markets were very much relieved. It seems like as long as inflation developments continue as they have been, it is only a matter of time before Powell continues to keep caving in to the outlook of broader markets - even if he continues to say that the Fed is still maintaining a differing view.
But the fact that he continues to crack the door open for more of a policy pivot to come, is enough for markets to get upbeat and believe that they are still right for the time being.
And that is very much evident on the charts, with the S&P 500 posting its highest daily close since August last year and taking out key resistance at 4,100 after the technical break last week:
If there is a strong follow through in the next two sessions and dip buyers are able to skirt around risks from the BOE, ECB and US non-farm payrolls, this is shaping up to be quite the major technical breakout for stocks to start the new year.
Looking at the chart above, the 16 August high at 4,325 may be the next likely target.