The Wednesday U.S. session is off with a bang, led by strength in the S&P 500. Shortly after the opening bell, bidders hit the S&P hard, driving values into uncharted territory above 3000.0. In fact, U.S. stocks are performing well an hour into the session, led by the DJIA DOW (+135), S&P 500 SPX (+15), and NASDAQ (+50).

As we have covered all week here at FX Leaders, today is a big day on the economic calendar. Jerome Powell’s congressional testimony and the FOMC Minutes headline a busy day in the markets. Powell’s prepared statements to Congress were largely dovish. Below are a few of the highlights:

• “Since May, global economic uncertainty has grown.”
• “Trade tensions and concerns on the global economy continue to weigh on the U.S. economic outlook.”
• “We are conducting a public review of our monetary policy strategy, tools, and communications; the first of its kind.”

In short, uncertainty is growing and the FED is reevaluating the situation as it develops. Powell’s prepared statements pretty much echo those of the June FOMC meeting.

S&P 500 Tests The Waters Above 3000.0

Today’s open was stronger than many expected, fueled by the dovish tone out of the FED Chairman. Subsequently, September E-mini S&P 500 futures returned to rarified air above 3000.0.

Overview: The daily chart for this market is a textbook case of trend continuation. Price rejected the 38% Fibonacci retracement level at 2971.00, before testing the 3006.00 All-Time High.

Barring a major turn of events, it is long-or-nothing until proven otherwise for the U.S. indices, especially the S&P 500.