Good Thursday morning. In my trading notes from yesterday (below), in addition to US markets hitting heavily overbought levels (short term), J Powell and his friends at the Fed aren’t fans of their activities being front run, in this case Powells speech tomorrow morning at Jackson Hole (10 AM EST). The combination is resulting in losses across the board today, led by the semis down 1.8% and Nasdaq lower by .90%.

This looks very much to me like standard backing and filling action. Should this continue into Powells speech tomorrow, I would then look for a snap back move higher. We are nowhere near heavily overbought levels on the VRA System, medium-long term…only in the very short term.

To be crystal clear;

1) the Fed is going to cut rates next month, something that Powell should all but verify tomorrow. Following yesterday’s 800k+ revision lower in jobs data, he’ll have plenty of ammo to be dovish. The problem comes when Powell starts taking questions…he is easily triggered and...