The U.S. stock markets are off and running this week as traders take a cautious stance. At the midway point of the Wall Street session, the DJIA DOW (-38), S&P 500 SPX (-2), and NASDAQ (-36) are all in the red. The big financial news is a collection of ominous comments from Fed Chairman Jerome Powell.

In a Sunday interview with mainstream media program 60 Minutes, Jerome Powell addressed several issues facing the American economy. Here are Powell’s key quotes:

• On cyberattacks: “You would have a part of the financial system come to a halt, or perhaps even a broad part. There are cyberattacks every day on all major institutions now. That’s a big part of the threat picture in today’s world.”
• On broad risk: “The world changes. The world evolves. And, the risks change as well. I would say that the risk we keep our eyes on most now is cyber risk. That’s really where the risk, I would say, is.”
• On a repeat of the 2008 financial crisis: “The chances that we would have a breakdown that looked anything like that are very, very low.”

So, Powell is upbeat about the health of the American financial system. However, he also has grave concerns regarding cybersecurity. For U.S. stocks, the interview’s tone is having a negative impact. Although the action is quiet, this could be an extremely interesting week on the markets.

U.S. Stocks Stumble, S&P 500 Pulls Back From All-Time Highs

The chart below gives us a good look at the June E-mini S&P 500 as of last Friday’s close. Prices are in bullish territory and this year’s uptrend is intact.

Overview: From a technical standpoint, it’s long-or-nothing for U.S. stocks. Other than the big-round-number of 4200.00 in the June E-mini S&P 500, there aren’t many resistance levels to respect. Unless we see a dramatic shift in monetary policy or another round of COVID-19 lockdowns, American equities are highly likely to continue posting gains.