Jackson Hole Game Plan
Stocks duly reversed the NVDA earnings and guidance euphoria, breaking even 4,425 with ease. Even the old 4,385 support from many weeks ago, was reached – I didn‘t count on such an easy bearish ride, but the selling picked extraordinary steam regardless of a not-so-bad day in Treasuries. Odds are thus not only for a crawl back to 4,407 but also to 4,415 today, still before Powell.
With all the fears of not just more rate hikes, but especially of no rate cuts any time soon, stocks had been quite beaten down this week, and as is usually the case, the positioning would (temporarily) get dialed back next week before stocks continue correcting lower again. Bears would prevail no matter how much inflation data dependency is mentioned.
Let‘s move right into the charts (all courtesy of www.stockcharts.com).
S&P 500 and Nasdaq Outlook
Daily levels are given in the introduction to today‘s article, and I‘m looking for a fine retracement first (as is being played in Intraday Signals due to this being a brief opportunity) before implications of Powell‘s words sink in, which may be as delayed (taking as long to develop) as selling into NVDA earnings.
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