Recall from Monday’s note:
Nasdaq 100 Non-Commercial Traders Net Futures Positioning:
I.e., the bears are still sticking their necks out there — risking getting their heads handed to them if indeed the Fed delivers a dovish message… I.e., that “huge short-covering if they come in dovish,” will serve to add a not-small upside boost to stocks in that scenario…
Here’s today’s Nasdaq 100 1-minute chart… The red X marks 5 minutes into Powell’s press conference:
Yep, call it a dovish message, and, yep, call it yet another short-covering rally.