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Assessment: NASDAQ went launching higher on Thursday morning, only for the bears to come in and smack the bulls around.
The payroll revision was seen as one reason for the selling, along with some discussion that Powell will be discussing at Jackson Hole that rates will be higher for longer, with potentially more rate increases on the way. Powell will be leaving “no room for dovishness” according to a piece in Bloomberg. Not good for a market hoping for a pivot.
There’s still no real fear in the market though! The VIX remains at 17. Above 20 would show the initial bits of fear creeping in.
For me, the biggest signal is the 10 year yield breaking above 4.3% and holding 4.2% rather easily this week. That’s the big news. With rates that high, the NASDAQ and all risk assets are going to be bogged down.
Good luck in your trades!