Both the S&P index and the NASDAQ index are trading to new session highs and are making new week highs as well. The S&P is trading to new highs going back to last Wednesday. The NASDAQ index is trading to the highest level since Tuesday of last week.
In the process, the price is extending above 50-hour moving averages (black line on the charts below). For the S&P index, the 50-hour moving average comes at 4411.64. The current price is trading at 4426.17. Staying above is more bullish.
S&P index is above its 50 hour moving average
For the NASDAQ index, its price is also moving above its 50-hour moving average at 13511.35 and also its higher 100-hour moving average at 13680.29. The current price is trading at 13701.21 up 195 points or 1.45%.
Yields are lower with the 10-year yield down 10.3 basis points, helping the bias. Also helping is the weaker flash PMI indices as traders lessen their fears about a reacceleration of growth and inflation
After the close and video will announce earnings. The high-flying stock rose 24% after the company surprised the market by targeting $11 billion for revenues in the current quarter (the estimate was at $7 billion) when they announced earnings last quarter. And Nvidia shares are currently trading up $9.40 or 2.08%. It price spike to a new intraday high yesterday near the open of $481.90 before tumbling to a low of $452 near the open today.
Later in the week, the Jackson Hole Summit will headline Fed chair Powell on Friday at 10:05 AM. In the past, Powell has made significant policy proclamations during his speeches.
Recall from last year he told the market that the Fed would continue to tighten and be laser-focused on bringing down inflation. The fed funds target at the time was at 2.5% up from a low of 0.25%. The Fed funds target has since been raised to 5.5%.
What tilt – if any – will the Fed chair take this year?
Needless to say, his feelings and the market interpretation will be a big influence for stocks at least in the short term.
So buckle up. Understanding the risk in the bias-defining levels from a technical perspective, will certainly help