At Jackson Hole, Powell dampened hopes of the Fed pulling back interest rates.
The Fed’s focus currently is on bringing down inflation, even if that means a possible recession.
In the near-term, expect markets to go at least slightly lower.
However, for those that now believe the worst news is priced in, start accumulating for the long-term.
The 38 and 50 Fibonacci extension levels offer clues as to where prices may bounce back in a bull case scenario.
Bears can use the remaining extension levels for good exit points on short positions.
The Fed’s focus currently is on bringing down inflation, even if that means a possible recession.
In the near-term, expect markets to go at least slightly lower.
However, for those that now believe the worst news is priced in, start accumulating for the long-term.
The 38 and 50 Fibonacci extension levels offer clues as to where prices may bounce back in a bull case scenario.
Bears can use the remaining extension levels for good exit points on short positions.
This area might offer some support and trigger a near-term price retracement.
In the intermediate-term though, prices are trending downwards and we have yet to make new lows.
The focus on future earnings will begin as a new earnings season begins towards the end of the month.
Earnings revisions to the downside are likely and will weigh on the market.
On top of that, the Fed is likely to raise rates by 75 basis points, adding further pressure.
We likely haven’t seen the bottom of the bear market yet.