Stock bulls are being challenged, with the bulk of the selling pressure coinciding with a downbeat Fed assessment (Quarles bank stress testing). Less than 30 minutes before another Powell appearance, stocks are working to shake off yet another dip below 3100.

As a result, they're no longer trading that extended relative to the high yield corporate bonds to short-term Treasuries ratio (HYG:SHY).

Both the HYG ETF and HYG:SHY ratio got under pressure, but are once again slowly crawling higher. The S&P 500 is leading the charge, but still remains very short-term vulnerable regardless of the medium-term factors going the bulls' way.

Today is the final trading day of the week, and the bears are trying to erase a greater portion of the long weekly candlestick. Their efforts are though likely to turn out being a storm in a tea cup merely, regardless of the this week's lower volume speaking in their short-term favor.

I don't think we're entering a bear market, and the current back-and-forth trading will resolve with another run higher once the scary soundbites are countered with more buying the dip.

The open long position remains justified.

Thank you and have a nice weekend.

Monica Kingsley
Stock Trading Strategist
Sunshine Profits: Analysis. Care. Profits.