This is where Invesco QQQ Trust Series 1 (QQQ) is headed next

After an attempt higher, the QQQ’s are getting hit again this morning now trading in negative territory as the market leader NVDA has another rough day so far. In addition Fed chair Jerome Powell, speaking at Jackson Hole said inflation was still too high despite progress.

“We are prepared to raise rates further if appropriate, and intend to hold policy at a restrictive level until we are confident that inflation is moving sustainably down toward our objective,” Powell said in his speech.

$364 is now the first potential resistance in the QQQ’s with $366, $370 and $372 next. Above that, the next targets are $378.10, $380 with a gap fill to $382.79 above that. The QQQ’s 12-month highs are at $387.54. Beyond that, targets to the upside are $390 and then $400. 

The first potential support is now around the $359 area. Below that the next targets to the downside are $354.50, $349 and $340.

Federal Reserve Chair Jerome Powell, on Friday, reinforced his commitment to tackling the challenges posed by inflation, suggesting that additional hikes in interest rates might be on the horizon.

Addressing the attendees at the Kansas City Fed’s annual retreat in Jackson Hole, Wyoming, Powell stressed that despite significant progress in reigning in inflation, the current numbers are still higher than what the Federal policymakers consider comfortable.

This year’s statements bear resemblance to those made by Powell during the same event last year, where he hinted at the inevitable “pain” associated with efforts to bring inflation under control and steer it towards the Fed’s target of 2%.

However, a crucial difference between now and then is the rate at which inflation was soaring. While last year witnessed a more rapid ascent of inflation, current data suggests a more modest trajectory. Recent figures released by the Bureau of Labor Statistics for June and July indicated an easing in the rise of prices. Both months reported a core inflation increase of just 0.2%.

Despite the positive indications from the recent data, Powell urged caution. “The lower monthly readings for core inflation in June and July were welcome, but two months of good data are only the beginning of what it will take to build confidence that inflation is moving down sustainably toward our goal,” he noted.

Powell’s approach to the inflation issue reflects a balance of vigilance and caution. He acknowledges the inherent risks associated with both overreacting and underreacting to the inflation data at hand.

In a complex economic landscape, where the repercussions of action and inaction can have wide-ranging consequences, the Federal Reserve seems committed to making calibrated decisions, driven by sustained evidence rather than short-term trends.

As the world keeps a close watch on the Fed’s next moves, businesses, investors, and consumers will be looking for cues on how to navigate the evolving economic scenario. The Fed’s consistent focus on its inflation target is likely to shape key financial and economic decisions in the coming months.