On Thursday, a day before the Fed chairperson is scheduled to speak in Jackson on Friday the market simply traded sideways. The short-sellers were not active knowing that any selling is going to be aggressively met with the Fed buy programs for the Jackson Hole central banks summer retreat.
The Fed is now in a no-win situation. The Fed cannot raise interest rates because it will cause global stock market crash, but at the same time, the Fed cannot ease because it will crash the US dollar. A loss of confidence in the dollar will cause havoc to the global financial system as it will accelerates the speed of global de-dollarization..
So, expect the Fed Chair person Janet Yellen speech to be both dovish and hawkish. If so, look for the stock market to start selling off very soon.
Support for NQ on Friday remains at 4771.
