Down Spike After Powell Comments
ES-- When Powell's prepared remarks hit the tape (see below my chart), ES was trading at 4057, but the algos immediately interpreted the headlines negatively, which triggered a down-spike to 4012.25 so far. This initial bout of weakness has violated my shallowest expected pullback in the aftermath of the Thursday-Monday advance (see Chart). This leaves ES vulnerable to a deeper retracement of the upmove from 3025 to 4082.50-- into the 3995-4000 next lower key support zone... Last is 4019.00
Meanwhile, after Powell's prepared remarks, the markets are anticipating a Peak Policy Rate of 5.61% to occur in September, with Fed funds currently at 4.50%
Next up, Powell's Q & A session...