Summer Rally

We've been making the case that June 16 might have been the bear-market low in the S&P 500 when it closed at 3666.77. It was up 2.6% today to 4023.61, a 9.7% gain since last month's low. Today's performance was especially impressive. Instead of focusing on Fed Chair Jerome Powell's hawkishness on inflation at his press conference, the market may have rallied on his claim that the Fed might be able to subdue inflation without causing a hard landing.

The market was moving higher today even before Powell's 2:30pm presser . Economic indicators released in the morning showed that while the economy may be slowing, its not falling into a recession.