{"id":63161,"date":"2023-02-01T20:04:48","date_gmt":"2023-02-02T04:04:48","guid":{"rendered":"https:\/\/drduru.com\/onetwentytwo\/?p=63161"},"modified":"2023-02-02T00:36:09","modified_gmt":"2023-02-02T08:36:09","slug":"bullish-intent-extends-overbought-conditions-the-market-breadth","status":"publish","type":"post","link":"https:\/\/drduru.com\/onetwentytwo\/2023\/02\/01\/bullish-intent-extends-overbought-conditions-the-market-breadth\/","title":{"rendered":"Bullish Intent Extends Overbought Conditions – The Market Breadth"},"content":{"rendered":"\n

Stock Market Commentary<\/strong>: <\/h2>\n\n\n\n

The stock market oozed with bullish intent as it pushed its way through the latest Federal Reserve statement on monetary policy<\/a>. While Jerome Powell made sure to stick to the script and introduced no surprises to the market, he was surprisingly reluctant to underline the Fed’s hawkishness. The market made a mile out of an inch and put on an impressive display. Market breadth widened further, the major indices reached new milestones, and the volatility index plunged deeply into bullish territory. The current momentum supports an extended overbought period.<\/p>\n\n\n\n

Powell tried to assert some caution in the markets. He acknowledged his relief in the current disinflationary trends, but he also warned that over 50% of the PCE (personal consumption expenditure) is not participating in that trend. Core services, excluding housing, has not yet started a descent. Yet, when asked about easing financial conditions<\/a>, Powell did not take the opportunity to push back hard. Instead, he chose to point to the longer path of tightening conditions and did not address the current downtrend. The scolding was tepid, and the stock market ran right through it with bullish intent.<\/p>\n\n\n\n

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