Later today, at 12:45 PM ET, Fed Chairman Powell will participate in a Q&A session with the Economics Club of Washington, D.C, when we might learn if the Chairman thinks he needs to provide markets and investors a more nuanced version of his "dovish" press conference from last Wednesday (2/01/23), in reaction to which the equity indices (ES) took off to the upside (see my attached Hourly Chart) from 4054 to 4208 (+3.9%)... after previously admonishing the markets during prior press conferences about loosening financial conditions (rising equity and bond prices) too quickly, thereby complicating the Fed's job of returning inflationary pressures to 2%.
From the time Powell's Q&A participation was announced early yesterday morning, ES has been on the defensive, but stubbornly so. The index has relinquished about two-thirds of the post-FOMC press conference gains, but the weakness has NOT inflicted any serious damage to the dominant uptrends off of the 1/06 and 1/19 nearest-term pivot lows. To inflict damage, ES will have to press beneath key support zones at 4050 to 4070, and if violated, then confront and break 4020 down to 4000.
In the absence of such damage, my pattern work argues that current weakness represents a (so far) orderly pullback that when complete, will resolve itself in another buying opportunity (BTD) ahead of upside continuation that projects next to 4250/60, and then to 4300... Last is 4127.00