Today's Jackson Hole speech by Fed Chair Yellen seemed to contain something for both bulls and Bears- She initially came off quite hawkish by saying the case for increasing Fed Funds rates had strengthened in recent months. Bond yields ripped, the Dollar spiked, and S&P tanked nearly 10 points from levels near 2180 it hit back around the markets open.
Yet this Spike in DXY, TNX proved short-lived, as Yellen's talk about the Long-term outlook brought about much more of an uncertain view than what might have been expected. Her saying "the range of likely outcomes for the Fed Funds rate is quite wide" given Monetary policy not being on a pre-set course, along with Short-term rates varying in time consistent with the dual mandate gave far more of an uncertain view, which given the subsequent move in yields straight back down.. seemed to dominate the outcome.
So the market Not having a firm view of the future of the economy, which might be expected, continues to favor a low rate environment and US Dollar weakness, despite Yellen initially talking up the case for a strengthening economy.
Meanwhile , yield curves are breaking back down to new weekly lows post Yellen, with 2s/10s, 10s/30s breaking down to new lows and/or violating their minor uptrends from mid-July.
Overall, Equities held yet again, areas of importance and have moved back INTO this former pennant, having averted disaster yet again, the 2-3 day trend having improved following Yellen remarks. To truly think a move to new highs should happen, we'll need to see S&P regain 2188
At 11am EST.. Stocks at higher by 0.30%, while TNX remains lower by 2% to 1.54%. The rapid swings in the DXY have not resulted in too much net change, while Gold is higher by 0.85%. Energy, Technology, Healthcare and Materials are all higher by 0.50% or higher today.