The stock market is standing on the edge of what could be a major breakout—or a massive missed opportunity for those too hesitant to act. The Federal Reserve’s recent move to hold rates steady has sparked a wave of optimism, and the smart money is piling in. If you’re still sitting on the sidelines, you might want to rethink your strategy because this could be the moment to go all in.
In a recent Swing Trader Weekly episode, Mike Webster, Senior Market Strategist, and Justin Nielsen broke down why the market is at a critical inflection point. The takeaway? The signs are too strong to ignore: It’s time to be bold.
The Fed’s Steady Hand: A Game-Changer for Investors
Let’s be real—up until now, Jerome Powell’s leadership at the Federal Reserve has sparked more skepticism than confidence. But after last week’s decision to hold rates, even the harshest critics are starting to change their tune. Instead of panicking about runaway inflation or over-aggressive rate hikes, the market got what it wanted: stability.
And guess what? The market loves stability. Stocks reacted favorably almost immediately, with a solid rally on Thursday that’s continued to hold. It’s no exaggeration to say that Powell has won over some of his biggest doubters, including Webster, who admitted he’s now “all in” on Powell’s approach—until proven otherwise, of course.
Let’s not sugarcoat it: The Fed’s newfound credibility is one of the biggest reasons we’re seeing the market at this pivotal moment. Powell has made it clear that he’s ready to adjust policy based on the data, giving investors the confidence they need to pour back into equities. For anyone who doubted Powell’s ability to manage this high-wire act of cooling inflation without tanking growth, the latest developments should be a serious wake-up call.
Nasdaq and S&P 500: Ready for Liftoff?
The Nasdaq and S&P 500 are starting to show signs that they’re ready to shake off their recent doldrums. The Nasdaq, which had been lagging for weeks, just broke through a critical resistance level—the August 22nd high—and that could be the catalyst for an explosive move higher.
Let’s not mince words: This is the kind of setup where smart traders are licking their chops. When an index breaks through a marked high like this, it’s often followed by a sustained rally. We’re talking big gains, and the market’s signaling that we could be on the verge of just that.
Over on the S&P 500, things are looking just as promising. The index has not only cleared its August 1st high—a key line in the sand—but has also shown impressive resilience since the Fed’s announcement. We’re seeing the kind of tight consolidation at the top that suggests the market is gearing up for its next big move. If you’re still waiting for more confirmation, you might miss the boat entirely.
Time to Put the Pedal to the Metal
Here’s where it gets interesting. Webster made it clear in the Swing Trader update: now is the time to be aggressive. The bulls are clearly in control, and the setup couldn’t be more perfect. For those waiting for the “all-clear” signal, consider this it.
What’s especially encouraging is that we have solid support levels not too far below. If the market were to reverse and break through key areas, there’s plenty of time to get defensive. But right now, the opportunity to make substantial gains is front and center. Hesitating at this point could be the difference between riding the next wave up or being stuck on the sidelines while others cash in.
The Economy: More Resilient Than You Think
If you’re worried about the economy crashing under the weight of high interest rates, you might be missing the bigger picture. Inflation is stabilizing, the labor market is strong, and consumer spending remains robust. Let’s face it: The doom-and-gloom crowd has been wrong more times than right this year.
Look beyond the headlines, and you’ll see a U.S. economy that’s proving far more resilient than many gave it credit for. Yes, there are risks on the horizon—there always are—but betting against the American consumer has been a losing strategy for years. The fundamentals are there for continued growth, and the market knows it.
Even global concerns, like the slowdown in China, aren’t holding the market back. In fact, recent stimulative measures from the Chinese government have breathed life back into their stock market, with major players like Alibaba and Tencent posting significant gains. If China’s on the mend, that’s just another positive tailwind for U.S. markets.
The Bulls Are in the Driver’s Seat—Are You Buckled In?
At this point, it’s hard to argue that the bulls aren’t in control. The New York Composite—often a leading indicator for the broader market—is showing incredibly bullish action. Its relative strength index (RSI) looks far healthier than the Nasdaq, which means we could be in for a bigger move up in the near term.
Webster pointed out that the New York Composite bounced perfectly off its 50-day moving average—an action that’s typically a strong signal of upward momentum. This is the kind of technical setup that traders dream about. The market is giving you all the signs it needs: it wants to go higher. All you have to do is listen.
Why Now Is the Time to Be Bold
For those still cautiously tiptoeing around the market, now’s the time to stop playing defense. Yes, the market’s been volatile this year, but every time there’s been a pullback, it’s been followed by a rally. If you’re waiting for the perfect moment, you’ll miss out while everyone else is making money.
Here’s the controversial take: The economy isn’t going to crash anytime soon. The Fed has things under control, inflation is leveling off, and global concerns like China are starting to ease. Sure, there’s always the possibility of some unforeseen event, but right now, all systems are go. If you’re not leaning into this market, you’re doing it wrong.
Conclusion: This Is Your Moment—Don’t Miss It
We’re standing at the edge of what could be a massive breakout, and the smart money is already making its move. The Fed’s steady hand, combined with positive market action, makes this one of the best setups we’ve seen in months. If you’re not bullish right now, you might be missing one of the biggest opportunities of the year.
The market is giving you every reason to be optimistic. Major indexes are showing signs of life, the economy is proving resilient, and global headwinds are easing. The bulls are in control, and the window to get in on the action is wide open. The only question is: Are you ready to take the leap?
This is not the time for hesitation—this is the time to act.
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