The Spirit was there to anoint Christ and to move with Christ, but at that time the Spirit had not yet entered into the believers to flow out as rivers of living water (John 7:37-39). In this sense "the Spirit was not yet." John 7 tells us that the Spirit was not yet, because by that time Jesus was not glorified in His resurrection. Resurrection was for the man Jesus to get out of His human shell and to release the divine life, and this resurrection is called glorification. Before Christ was thus glorified, the Spirit was not yet. When John said "the Spirit was not yet," he meant that the Spirit was not yet to flow out of the believers as rivers of living water. But the Spirit was there for the anointing of Christ and the moving of Christ in His ministry.
The anointing of Jesus the man and the moving with Jesus the man was God making Himself one with man on a small scale in an individual way, with one person. But when the Spirit flows into the believers and flows out of them as many rivers of living water, God being one with man and man being one with God becomes a corporate matter. It is not just with one man, Jesus, but with millions of His believers. This is the enlargement of God being one with man. God's being one with man altogether depends upon the Spirit. The Spirit is a big key to the organic union of God with man.
Through and in His resurrection Christ as the last Adam became the life-giving Spirit to enter into His believers to flow out as rivers of living water (1 Cor. 15:45b; Rev. 21:6; 22:17c). God is a Spirit and the Second of the Triune God in the flesh became a life-giving Spirit. Prior to Christ's resurrection, God was a Spirit but not a life-giving Spirit. Before Christ's death and resurrection, God had no way to enter into man to be man's life. Between man and God there were a number of negative things as obstacles. According to the typology seen in Genesis, the way to God as the tree of life was closed by the requirements of God's glory, God's holiness, and God's righteousness (Gen. 3:24; see Life-study of Genesis, pp. 282-286). A fallen, sinful, unclean man was altogether unable to take the tree of life, to take God in as life, until Christ's death fulfilled these requirements.
Hebrews 10 reveals that the death of Christ opened the way, a new and living way, so that we can go into the Holy of Holies to partake of God as the tree of life (vv. 19-20). In His death He fulfilled all the requirements of God's glory, holiness, and righteousness; then in resurrection He changed in form to be the life-giving Spirit. This was absolutely for the organic union between God and man— to bring God into man and to bring man into God in His resurrection. Today we can take the tree of life and drink the water of life so that the Triune God can flow out from our innermost being as rivers of living water.