On Friday, I wrote, “buckle up, the Fed is about to make a MAJOR announcement.

I wasn’t joking.

Stocks EXPLODED higher to new all-time highs on Friday when Fed Chair Jerome Powell stated that “shifting balance of risks may warrant adjusting policy” during his speech at the Kansas City Fed’s annual meeting in Jackson Hole, Wyoming.

Investors took this to mean that the Fed is finally ready to start cutting rates again… after sitting on its hands for the last eight months.

The S&P 500 staged its highest ever weekly close. There is NOTHING bearish about that.

Moreover, the rally was broad based in nature with even the equal weighted S&P 500 (each company receives 1/500^th of the index’s weighting as opposed to the traditional S&P 500 which is HEAVILY weighted towards tech) closing at a new all-time high for the week.

The big question for investors now is whether this move is the REAL DEAL… or the mother of all head fakes due to traders misinterpreting what Fed Chair Jerome Powell ACTUALLY said.

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