Feel the Suspense Building

Although we are still working through the home stretch of the dog days of summer trading, the Fed Minutes (from the last FOMC) at 2pm EST today should give valuable insight as to how many voting members are actually onboard with a fairly imminent taper by the Central Bank. Furthermore, Jackson Hole is at the end of next week and can be market-moving into Labor Day if Jay Powell drops hints at a September FOMC taper announcement. In addition, NVDA earnings tonight should be pivotal for a chip sector which just noticeably backed off its latest push to new highs on the SMH sector ETF, especially with the likes of CREE getting walloped today after earnings. 

On the bull side, small caps and ARKK are bouncing as we speak, offering the lagging IWM a shot to stage a re-rotation into autumn and silence bears. And, to be sure, bulls will need ARKK IWM to act well, especially with AMZN yet to find buyers below its 200-day moving average (daily chart, below). True, AAPL MSFT and other trillion dollar market cap firms can theoretically march into the sky like a modern Wall Street Tower of Babel. 

However, I think you will see by the time autumn officially arrives that the suspense building in this market hinges on the high multiple growth stocks, many of which ARKK holds, can find their footing for a new leg up...or succumb to a fresh leg down. 

One bright spot today so far: DoorDash (DASH) basing well after earnings and threatening a fresh leg higher.