“Market Breadth Has Spoken.”

Powell’s potential pivot at Jackson Hole drove a breadth surge that was enough we think to cause even the most reluctant bears to pause and reconsider their positioning. Although it can easily be argued that the longer-term outlook remains suspect, until the short-term tactical conditions deteriorate, those concerns must be kept on the back burner.

Whatever short-term deterioration may have been surfacing prior to Powell’s speech, they were wiped out that Friday. This means that the whole deterioration process needs to begin anew again, which can take many weeks or months to complete, and between now and then, we remain tactically bullish.

To be sure, there are long-term charts that need to get better before we can endorse this bull trend longer-term. We review them and what we need to see change (or not change in the case of rates), but we leave them on the back burner for now until the tactical bus runs out of gas.