Short covering rally is over, now waiting for Powell

Mid-week market update: According to Goldman Sachs, systematic hedge fund positioning has reversed from a crowded short to a crowded long. Readings are similar to the levels seen at the market top in late March. 

The S&P 500 stalled at 200 dma resistance. In light of this analysis of HF positioning, the bulls are unlikely to regain control of the tape in the near term. The key question for traders is, "How will the Powell speech Friday move the markets?"
The full post can be found here.