What’s Weighing on the Market Today?

[] why the market’s still struggling [] [] [] [] Friday, we saw a lot of back-and-forth action in the markets following Powell’s speech. While the market initially popped, it quickly dropped before bouncing back up and closing with a green candle by the end of the day. Powell said what the market wanted to hear: “The time has come for policy to adjust,” which is code for reducing rates. But as [I mentioned last week]( rate cuts aren’t necessarily bullish for the market. The Fed doesn’t cut rates when the economy is humming along smoothly; they cut rates when the data shows the economy is slowing down. So, even though the market might get excited at the prospect of rate cuts, we can take a smarter view and keep a cautious eye on the broader economic picture. Today, we’re seeing the market pull back again, and it’s easy to wonder if this is a delayed reaction to Powell’s speech. But there might be more to it than just that. Last week, the jobs numbers were revised down by a staggering 818,000 jobs. That’s not a small revision — it’s a pretty huge adjustment which could be a red flag that the economy isn’t as strong as we thought. So while Friday’s rally was fueled by hopes of rate cuts, today’s sell-off could be the market starting to digest the reality that the economy might be weaker than expected. As I said before, the market loves rate cuts in the short term, but they often signal bigger problems ahead. So, while everyone’s eyes are on Powell, I’m keeping an eye on the key economic indicators that will drive Powell’s decision. One key thing to keep an eye on is how the recovery has been pretty uneven. While the S&P is currently hovering above the 0.786 Fibonacci level, which is at 5592, the Dow briefly made a new all-time high today, before quickly retreating and closing just a hair above where it opened. Most surprising of all, for anyone who saw tech’s dominance earlier this year, is the fact that the tech-heavy QQQ — at least so far — has firmly rejected the 0.786 Fibonacci level and is floating just above the 0.618. Stay sharp. The real test for the market is still unfolding. — Geof Smith P.S. I just hosted Jack Carter’s 10AM Income Project today. If you’re not getting his top-vetted pick every morning at 10AM, you’re missing out. [See what I mean here.]( [] [] Friday, we saw a lot of back-and-forth action in the markets following Powell’s speech. While the market initially popped, it quickly dropped before bouncing back up and closing with a green candle by the end of the day. Powell said what the market wanted to hear: “The time has come for policy to adjust,” which is code for reducing rates. But as [I mentioned last week]( rate cuts aren’t necessarily bullish for the market. The Fed doesn’t cut rates when the economy is humming along smoothly; they cut rates when the data shows the economy is slowing down. So, even though the market might get excited at the prospect of rate cuts, we can take a smarter view and keep a cautious eye on the broader economic picture. Today, we’re seeing the market pull back again, and it’s easy to wonder if this is a delayed reaction to Powell’s speech. But there might be more to it than just that. Last week, the jobs numbers were revised down by a staggering 818,000 jobs. That’s not a small revision — it’s a pretty huge adjustment which could be a red flag that the economy isn’t as strong as we thought. So while Friday’s rally was fueled by hopes of rate cuts, today’s sell-off could be the market starting to digest the reality that the economy might be weaker than expected. As I said before, the market loves rate cuts in the short term, but they often signal bigger problems ahead. So, while everyone’s eyes are on Powell, I’m keeping an eye on the key economic indicators that will drive Powell’s decision. One key thing to keep an eye on is how the recovery has been pretty uneven. While the S&P is currently hovering above the 0.786 Fibonacci level, which is at 5592, the Dow briefly made a new all-time high today, before quickly retreating and closing just a hair above where it opened. Most surprising of all, for anyone who saw tech’s dominance earlier this year, is the fact that the tech-heavy QQQ — at least so far — has firmly rejected the 0.786 Fibonacci level and is floating just above the 0.618. Stay sharp. The real test for the market is still unfolding. — Geof Smith P.S. I just hosted Jack Carter’s 10AM Income Project today. If you’re not getting his top-vetted pick every morning at 10AM, you’re missing out. [See what I mean here.]( [] ABOUT US: We believe that the opportunity for financial literacy and freedom belongs to all people, not just those who already have years of investing experience. Prosperity Pub provides an array of educational services and products that will help you navigate the markets and become a better investor. Trading is made simple through our online forum full of trading techniques to give you the best tools to kick-start your investing journey. We offer collaborative webinars and training; we love to teach. No matter the opportunity, we bring together a strong community of like-minded traders to focus on analyzing market news as it’s presented each day. DISCLAIMER: FOR INFORMATION PURPOSES ONLY. The materials presented from Prosperity Pub are for your informational purposes only. Neither Prosperity Pub nor its employees offer investment, legal or tax advice of any kind, and the analysis displayed with various tools does not constitute investment, legal or tax advice and should not be interpreted as such. Using the data and analysis contained in the materials for reasons other than the informational purposes intended is at the user’s own risk. DISCLAIMER: TRADE AT YOUR OWN RISK; TRADING INVOLVES RISK OF LOSS; SEEK PROFESSIONAL ADVICE. Prosperity Pub is not responsible for any losses that may occur from transactions effected based upon information or analysis contained in the presented. To the extent that you make use of the concepts with the presentation material, you are solely responsible for the applicable trading or investment decision. Trading activity, including options transactions, can involve the risk of loss, so use caution when entering any option transaction. You trade at your own risk, and it is recommended you consult with a financial advisor for investment, legal or tax advice relating to options transactions. Please visit [( for our full Terms and Conditions. [Unsubscribe]( This email was sent to {EMAIL} by Prosperity Pub 101 Marketside Ave, Suite 404 PMB 318, Ponte Vedra, Florida 32081, United States [Prosperity Pub]( [] ABOUT US: We believe that the opportunity for financial literacy and freedom belongs to all people, not just those who already have years of investing experience. Prosperity Pub provides an array of educational services and products that will help you navigate the markets and become a better investor. Trading is made simple through our online forum full of trading techniques to give you the best tools to kick-start your investing journey. We offer collaborative webinars and training; we love to teach. No matter the opportunity, we bring together a strong community of like-minded traders to focus on analyzing market news as it’s presented each day. DISCLAIMER: FOR INFORMATION PURPOSES ONLY. The materials presented from Prosperity Pub are for your informational purposes only. Neither Prosperity Pub nor its employees offer investment, legal or tax advice of any kind, and the analysis displayed with various tools does not constitute investment, legal or tax advice and should not be interpreted as such. Using the data and analysis contained in the materials for reasons other than the informational purposes intended is at the user’s own risk. DISCLAIMER: TRADE AT YOUR OWN RISK; TRADING INVOLVES RISK OF LOSS; SEEK PROFESSIONAL ADVICE. Prosperity Pub is not responsible for any losses that may occur from transactions effected based upon information or analysis contained in the presented. To the extent that you make use of the concepts with the presentation material, you are solely responsible for the applicable trading or investment decision. Trading activity, including options transactions, can involve the risk of loss, so use caution when entering any option transaction. You trade at your own risk, and it is recommended you consult with a financial advisor for investment, legal or tax advice relating to options transactions. Please visit [( for our full Terms and Conditions. [Unsubscribe]( This email was sent to {EMAIL} by Prosperity Pub 101 Marketside Ave, Suite 404 PMB 318, Ponte Vedra, Florida 32081, United States [Prosperity Pub](