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Yesterday Jay Powell played the part of a kindly uncle offering reassurance to a beloved nephew with a message of uncomplicated simplicity which can be summed up as follows: ‘Don’t worry and carry on, I have your back.’

However, the question is whether the markets have been reassured by this saccharine statement and the answer is yes…and no! Overnight the YM Emini has crept higher whilst the NQ Emini and the ES Emini have slipped lower, so far from a united response, and with the US dollar being bought along with the Japanese Yen and the Swiss franc, has resulted in a nervous start to the trading day. Nevertheless, as we can see when considering the three indices on the daily chart the outlook overall continues to remain bullish with the trend monitor on each chart firmly blue. The YM Emini is moving towards a low volume node on the volume point of control (vpoc) histogram suggesting we can expect further upward momentum to develop in due course, whilst the NQ Emini has hit some technical resistance at 13,300 which was tested once again today as the index attempts to break away from the VPOC at 12,700 and denoted with the yellow dashed line. Finally to the ES Emini which is at a similar juncture as the YM with volume falling away on the VPOC histogram, and once beyond 3980 should open the way to a further leg higher in the longer-term bullish momentum.