Good Monday morning. It’s an important week for US stock markets…a week that we look for a significant short squeeze move higher to kick in, based on front-running of two major upcoming events; this weeks Fed meeting and anticipation of Q1 earnings reports.

We expect the FOMC statement and Fed Chair J Powells presser (Wednesday, beginning at 2PM EST) to reflect dovishness, which should act as rocket fuel for the markets. With the market having fast-forwarded into a correction and with signs that inflation is cooling (oil $66, friendly CPI, PPI) and with a US economy slowing slightly (airlines warning, massive DOGE cuts), we expect Powell to begin signaling a near-term resumption of the Feds rate cutting program. In addition, we expect the Fed to either halt their quantitative tightening (QT) program or to announce its cancellation, in the very near term. Again, highly bullish for US markets.

The VRA Investing System sits at 8/12 screens bullish. While that’s down from 10/12 bulli...