Has Jerome Powell Lost His Relevance?!

Last week, investors/traders eagerly anticipated two main events: Nvidia's NVDA earnings report and Federal Chair Jerome Powell's speech at Jackson Hole. As expected $NVDA beat their earnings by 24% and up over 100% from a year ago. As expected, the markets QQQ rallied, but unfortunately, that was short-lived, and $NVDA closed almost flat from its close the day before its earnings report. The Nasdaq fell over 2%, and all hope was lost for bulls, especially with Jerome "Puts" Powell speaking the following morning. Bulls momentarily bounced the market into Powell's speech. Still, Powell stuck the course and continued with the same exhausting speech we've been hearing for months:

• Inflation is high.
• We will continue to raise rates.
• The Federal Reserve will stop once the 2% inflation target is reached.

After a choppy/mix of 15ish minutes, the markets sharply dropped towards critical support established in June of this year (see chart below). Considering the bounce, investors quickly shook off Powell's words as if they, too, were tired of the same old rhetoric and beginning to look past current inflation risk. 

Next week is jam-packed with economic data-driven events, and after a strong close-off support, bulls have a solid chance to turn things around. Job openings for the quarter and Consumer confidence are on Tuesday at 10:00 AM (EST), GDP revision for Q2 on Wednesday at 08:30 AM (EST), Core PCE on Thursday at 0830AM (EST), and U.S. jobs report for August on Friday at 08:30 AM (EST). Talk about a recipe for a WILD ride next week, and considering the curling of the 4hr and daily MACD (Moving Average Convergence/Divergence) to cross to the upside and kep support, bulls might be able to turn that recipe into a Michelin Star-rated dish.

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