Listen: Stock market comeback faces big test with earnings season starting
"We start off with a make or break moment for this market. And that is right. We have to five hundred in the dangerous on right back levels. I was at its breaking point back into Szemberg after dramatic fall. And even more dramatic bounce back from the bottom. Ten percent move higher from the Christmas Eve Lowe's stocks make a Ron twenty six hundred once again, so the fed seemingly and check some progress on the trade war being made will the market make it out of the so-called danger zone down. Yeah. Well, listen, you know, you sit up kind of dramatic set up here. But he this Matthew. Ravic or viper. Even that, man. Okay. Fine. Smith on comedy six hundred level was really really important because from the October highs we had this decline. We got back down there. It's a level we've bounced had been technical support for a little bit and on December fourteenth when it broke it went straight down. So here we are right back there. One of the things I think is really important. I think you wanna look at a couple of the sectors that lead on the way down. We've been talking about Bank stocks in particular, the XL F. And then let's talk about the exceleye the tracks industrial stocks took to very cyclical groups here and really remember what was going on. There was a bit of a gross scare back then in December. So when you look at those two charts, the exceleye and the also approaching those breakdown levels here. So to me, I think if they get there, and they can't get above there and they fail then you continue to sell rallies. I think it's a tough spot to to press lows, but exceleye XL after really keys, the S and P five hundred has to get above twenty six hundred and stay there. It has to become support. Well, he's too close to missiles and switching to guns mouth. So bottom. Line here. Top gone. I got it. Smells like anyway. Bottom line. Here's I think the fed actually takes you out of the danger zone. If you believe the fed Mench were consistent with what pal gave us on Friday. And that's that's not predetermined to be robotic and foll- essentially a protocol rather than follow the data. And I think we've had reaffirmation that. We've all speculated very, well, you started at Mel talking about this guy that had to follow a script. Did you have to stick on courses as Powell learned about his messaging? But what I think we learned from the fed today's a couple things in Rosengren at some comments this morning. The market may be actually overstating the markets, the the economy and the weakness in the economy, and that's actually fed that to me might be ready to jump back into the fray, the most important things for me right now are the fact that Asia to me last night inflicted, and I think if ages starts to recover, and I'm not just talking about China 'cause I don't really care as much about the local markets there. But look at Korea, which is both an industrial export or and also the epicenter of a lot of the tech worries and look at the dollar, the dollar weakness the Dixie another weekday signaling. I think clear for crude which we talked about the top of the show. Oh and emerging markets, which are Neal the dollar to me is the key to this whole thing. Right. We had a very weak dollar today. Although I'm not convinced that the fed is out of the picture. My read of what the fed said is they want the ten year yield higher. They wanna steep yield curve."