May 2, 2024

By Nigam Arora & Dr. Natasha Arora

To gain an edge, this is what you need to know today.

Key Events Ahead

Please click here for a chart of S&P 500 ETF (SPY) which represents the benchmark stock market index S&P 500 (SPX).

Note the following:

• The chart shows the steep rally that started on Powell’s press conference.
• In yesterday’s Morning Capsule we wrote:

If political Powell shows up, expect a rip roaring rally.

• Three groups of investors were buying.
  • Investors driven by macro bought on the belief that Powell gave an all clear signal for buying stocks.
  • Investors who follow traditional technical analysis aggressively bought because a technical buy signal triggered.