Technicals | Aug 29 2023
By Michael Gable
Last week, we saw markets sell off into Friday's Jackson Hole meeting, concerned that Jerome Powell will say something to blow up the market.
In the end, there were no great surprises. It has been clear for a while (well to some of us at least) that central banks will not signal that rate cuts are a possibility because risk assets will take off. They would rather stay hawkish so they don't have to raise rates any further.
Every now and then, however, markets get too caught up in the short-term with what is said or not said, or what could be said or not said.
Instead, we need to rely on the data, and the data continues to show inflation heading the right way. US markets from here look likely to build a base sideways in the short-term before resuming their move higher. Only a break under about 4300 on the S&P 500 Index would be a cause for concern.
Locally, the S&P/ASX 200 Index also continues to trade sideways here at the lower part of its range, so the next move most likely would be up.
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