2/8/23 Powell Power


Sure, the President spoke, but the Fed Chair rocked the market.

While speaking at the Economic Club in D.C., Powell said The Fed expects “significant declines in inflation” in 2023.

Image from the NYT

And while the market went a wild ride, it ended sharply higher.

  • Dow Jones +0.8%
  • Nasdaq +1.9%
  • S&P 500 +1.3%
  • Russell 2000 +0.8%

Sector Round Up

The bullish push was NOT all-consuming. Despite the strong rally, 3 of 11 sectors ended lower.

The top performers…

  • Energy (XLE) +3.3%
  • Technology (XLK) +2.5%
  • Communications (XLC) +1.9%

At the bottom…

  • Utilities (XLU) -0.0%
  • Real estate (XLRE) -0.4%
  • Consumer Staples (XLP) -0.4%


The S&P 500, represented on the chart below, has passed its first major test by breaking through resistance and holding above it for several days.

SPY Daily Candles – Chart via thinkorswim

Unfortunately for the bulls, it still has 2 major resistance levels ahead of it.

While the market is likely to overcome these barriers, we expect buyers to struggle in the coming weeks. Markets don’t move in a straight line.

This morning…


Markets aren’t due for any significant shake-ups until next week.

New inflation data is due in a few days. Here’s a link to your February outlook for the schedule.


*Low Float
^Open Position

*BBAI support at $4
*LIXT support at $1.50
*^VRAR resistance at $6.50
*IVDA support at $2
^AEHR resistance at $37
TRVG support at $1.80
CABA support at $12
NSSC support at $31
^VERI support at $9
DSKE support at $8, resistance at $9
CDTX support at $1.60
CBAY support at $8
AI support at $22 or $23
TGTX support at $18
OI support at $20
AMRN support at $2

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