Broader US indices making new highs

<p>Both the S&amp;P index and the NASDAQ index are trading to new session highs and are making new week highs as well. The S&amp;P is trading to new highs going back to last Wednesday. The NASDAQ index is trading to the highest level since Tuesday of last week.</p><p>In the process, the price is extending above 50-hour moving averages (black line on the charts below). For the S&amp;P index, the 50-hour moving average comes at 4411.64. The current price is trading at 4426.17. Staying above is more bullish. The 38.2% retracement of 4439.12 and the following 100-hour moving average of 4450.42 are the next upside targets to increase the bullish bias in the short term/medium-term. </p><p>For the NASDAQ index, its price is also moving above its 50-hour moving average at 13511.35, but is also moving above its higher 100-hour moving average at 13680.29. The current price is trading at 13701.21 up 195 points or 1.45%. The next key target comes against the 50% midpoint of the move down from the July high. That level comes in at 13804.16.</p><p>Yields are lower with the 10-year yield down 10.3 basis points, helping the bias. Also helping is the weaker flash PMI indices as traders lessen their fears about a reacceleration of growth and inflation. The question going forward is "Is the slowing in growth too fast?", or "Will it be just right?". See Adam's post <a href="https://www.forexlive.com/news/bad-news-is-still-good-news-but-the-bad-news-is-mounting-20230823/" target="_blank" rel="follow">HERE</a>. </p><p>After the close Nvidia will announce earnings. Last quarter, the high-flying stock rose 24% after the company surprised the market by targeting $11 billion for revenues in the current quarter (the estimate was at $7 billion). Nvidia shares are currently trading up $9.40 or 2.08% at $467. Its price spiked to a new intraday high yesterday near the open of $481.90 before tumbling to a low of $452 near the open today.</p><p>Later in the week, the Jackson Hole Summit will headline Fed chair Powell on Friday at 10:05 AM. In the past, Powell has made significant policy proclamations during his speeches. </p><p>Recall from last year, Powell told the market that the Fed would continue to tighten and be laser-focused on bringing down inflation. The fed funds target at the time was at 2.5% up from a low of 0.25%. The Fed funds target has since been raised to 5.5%. </p><p>What tilt – if any – will the Fed chair take this year? </p><p>Needless to say, his feelings and the market interpretation will be a big influence for stocks at least in the short term. </p><p>So buckle up. Understanding the risk in the bias-defining levels from a technical perspective, will certainly help</p>

This article was written by Greg Michalowski at www.forexlive.com.