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Post-Powell Support Evaporating

US STOCKS
  • US equities are weaker in recent trade, the e-mini S&P futures reversing session highs in the last few minutes, with front-month futures down to 3982 a few minutes after trading 4003.0 session high.
  • No particular headline driver, recent support tied to Chairman Powell sounding less hawkish than Tuesday's testimony, appears to have evaporated as participants set sights on Friday's employment report.
  • A significantly stronger jobs gain over the current consensus 225k (or anywhere near January's +517k gain) will rekindle hawkish policy expectations.
  • From a technical standpoint, a continued decline would pave the way for weakness towards the next key support at 3925.00, Mar 2 low. This level is a bear trigger and a breach would confirm a resumption of the bear leg that started on Feb 2.

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