Powells recent remarks gave the S&P the boost it needed to test the weekly bearish trend line and now price action is also at a strong horizontal area of resistance. Other indices such as the FTSE have retraced most of the drawdown from when markets started falling at the start of the year. The S&P also is currently testing its Weekly 50ema.
The VIX, which is the volatility index of the S&P is also heavily oversold and is sitting right back in a large area of support, as would be expected from the S&P moving higher in recent weeks.
DXY, which has seen a pretty strong pullback after the recent bear market equity rally is now back at Weekly support, which coincides with getting very close to its Weekly 50ema.
The confluence seen is also reflected in EURUSD, which is retesting its Weekly 50ema and a weekly horizontal resistance level.
At current the confluence in the markets is pretty clean. Powell seemed to suggest that next months rate increase would be 50 basis points and the markets seemed to really bounce from that news. However, Powell was hardly dovish. If anything it seems to me that the recent rally after Powells comments enabled the markets to move up to a good area for bearish positioning.
Short S&P, Long VIX, Short EURUSD and Long DXY.