Traders used a defensive strategy ahead of Powell’s speech at Jackson Hole.
by VT Markets
/
Aug 20, 2025
The S&P 500 is falling to important levels ahead of Fed Chair Powell’s speech at the Jackson Hole Symposium. Traders are likely cutting back on their positions and setting up protections because of the stronger-than-expected US Producer Price Index (PPI), improving jobless claims, and unexpected inflation expectations from the University of Michigan survey.
Before this recent data, the S&P 500 had gained from the US Consumer Price Index (CPI) report meeting forecasts. However, the market mood shifted with concerns about Powell’s speech, leading to a pullback as traders reacted to possible discussions about interest rates.
Possible Rate Decisions
Powell may not announce specific actions, instead choosing to wait for more data. If he hints at a possible rate cut in September, it could lead to a rally as traders unwind their protections. On the other hand, if he limits prospects for a September cut, the stock market could decline further.
On the daily chart, the S&P 500 could not hold its rally above a previous high and is now heading toward a significant trendline around the 6,380 level. Buyers might step in below this trendline, while sellers could aim for a further pullback to 6,241. In the 1-hour chart, a slight downward trend suggests bearish momentum, with sellers ready to push for lower prices and buyers looking for a breakout.
by VT Markets
Aug 20, 2025
Insights 
VT 
