Federal Reserve Chair Janet Yellen will speak at Kansas City Fed's monetary policy symposium, in Jackson Hole, Wyoming. The title of her talk is “Designing Resilient Monetary Policy Frameworks for the Future.”
Who knows what new tactics the Fed Chair will be telling us all what she has come up with. The title of the talk is interesting. Maybe she has figured out a way to tighten monetary policy without raising the Fed Funds Rate. Sure, why not. Government can pull many rabbits out of a hat.
The broader markets traded sideways yesterday after Wednesday's bit of selling. Today we should see if the selling was a one day event or it continues and the daily uptrend is broken,
The broader market is sitting at Major Support (MS) where buyers held the ling so far this week. The DOW EFT DIA has moved slightly under its MS. However, the Russell 2000 ETF IWN is showing relative strength and well above its MS area. We will see today if the Fed Chair breaks this market or not.
Only change above is the Transports move back to a sideways trend. Sentiment is the other warning at this time. So which ever direction the market do move today or next week the odds are it will not be much.
As we all know volatility has been low for a while. There is no rule or guideline that has it cannot say that was for a while or longer period of time. There is a clear line above that should be monitored to know if a break above occurs. The top chart if for the Volatility based on S&P 500 options and the bottom the Nasdaq 100.
Gold and Gold Miners ETF GLD and GDX stabilized after the recent selling. GLD is at a MS area and GDX has violated its. Yellen's comments are likely to move these today.
Biotech (IBB) and Healthcare (XLV) both have been hit hard by selling the last few days on comments by Mrs. Clinton's view on the price increase of a drug.
Really, now she cares after we everyone's healthcare costs have been rocketed higher since Obamacare.
Oil (USO) and Energy stocks held up relatively well the last two days. They are correcting after the big run higher they have had. No sign that is over yet. We'll monitor them.
Financials (XLF) and Regional Banking (KRE) have been hold well. Especially after the gap higher this week that resulted in prices falling all the way back. Janet Yellen's comments could move these sectors today.
Above are 180-min. 24-hour charts of the S&P 500, Nasdaq 100 and DOW futures. I post this pre-market at Twitter, StockTwits and Facebook each day before the open. Typically, with a 30-min. time frame. I wanted to show more information today.
Prices are right where they were yesterday morning. So we wait for the FED to speak.
Good Luck in today's trading and Happy Friday!
All the best,
Founder of The Pristine Method of Trading