- After some whipsawing action that saw the reflation trade take a break after last week's Fed meeting only to return with renewed vigor yesterday, the stock market is little changed early.
- The Nasdaq (COMP.IND) +0.1%, Dow (DJI) -0.2% and S&P 500 (SP500) -0.1% are moving slightly.
- The 10-year Treasury yield is up 2 basis points to 1.51%.
- Federal Reserve Chairman Jay Powell will speak before the House Select Subcommittee on the Coronavirus Crisis this afternoon.
- In his prepared remarks he stuck to the script, saying price gains are transitory.
- The Fed really had no change in policy or reaction function last week, just a change in communication, Tom Tzitzouris, head of fixed income at Strategas, says.
- While the Fed pulled the dot plot forward to a rate hike in 2023, the market pulled its expectation back to June 2022, which is "really a serious overreaction," he said on Bloomberg.
- Bitcoin is in focus after its tumbled below $30K, hitting the rest of the crypto space.
- The megacap stocks are mostly higher, with Alphabet slightly down and Tesla hugging the flatline.
- "Shares (of Tesla) have registered consecutive lower highs and subsequently violated an uptrend," Craig W. Johnson, technical market strategist at Piper Sandler, writes.
- He adds there's also been a recent bearish crossover between the 10-/30-week WMAs, while relative strength "has faded into neutral territory."
- "A close below the March lows at $563 would leave $540 and $500 as the next key levels of support."
- Here are some dueling views of how soon Tesla can achieve autonomous driving and what it means for the stock.