The stock market surged after Mr Powell’s comments stating that the US monetary policy is close to the neutral level. This means that the market may over the next few quarters focus its attention on earnings perspectives and valuation. For old timers, we stand close to the situation we went through in 1984 and 1993. Short covering was again at work during the trading session as measured by our buying/selling index which recorded a frenzy of buying. Technically, the S&P 500 hit a wall against the 200 day moving average. Our scenario of a bottom at around 2550 may be invalidated if internal momentum continues over the next few days.