Market Update August 24, 2016 – Ahead of Jackson Hole, $ES_F, $SPX, $WMT

Investors are waiting ahead to Jackson Hole and Yellen’s comments to provide clarity on the direction for the Rates. Janet Yellen is set to speak at 10 a.m. EST, and stock market will likely to remain in choppy mode, so as of now here is the look at the market from our point of view:

Weekly Bear: A multi-week high is overdue.
Daily Trend Bear Reversal: A multi-day, if not multi-week high should be near completion, if not complete yesterday. However, the ES daily DTosc there was a Daily BearRev yesterday

With the weekly Momentum indicators being Over Bought for the past four week, which is extreme and now the Daily momentum having a BearRev from yesterday, the Daily time frame should be Bear at least 2-3 days with perhaps a weekly top in.

Of course this must be tempered with tomorrows speech, however, this is the current technical position

ES Intraday ES: 240m OS, 60m Bull, VV AD =.95 neutral to slightly Bear

Conclusion the recent 60 minute chart shows a bounce is coming in the 2164-66 area…( Note we previously pointed out this bounce in Chat ROOM)

Today’s Economic Calendar

Monetary policy symposium
8:30 Durable Goods
8:30 Initial Jobless Claims
9:45 Bloomberg Consumer Comfort Index
10:30 EIA Natural Gas Inventory
11:00 Kansas City Fed Mfg Survey
1:00 PM Results of $28B, 7-Year Note Auction
4:30 PM Money Supply
4:30 PM Fed Balance Sheet

Wall Street set for losses as Yellen speech draws closer

By U.S. stock futures dropped on Thursday, with investors staying cautious as the closely watched summit of central bankers in Jackson Hole got ready to kick off. Federal Reserve Chairwoman Janet Yellen isn’t speaking at the meeting until Friday, but financial markets have been lackluster all week in anticipation of what she might say about the path of interest rates.

Today we took $WMT a short position (trade), please note trade setup on the following 4 hours 30, 15 minute charts and Daily Chart for a longer time setup, they triggered the short play and we have put the trade information in chat room