Stocks rose on Friday heading for a winning week as Federal Reserve Chairman Jerome Powell prepared the markets for the central bank to pull back on some of its monetary stimulus, saying it’s likely to start tapering its $120 billion in monthly bond purchases this year.

The S&P 500 rose 0.8% to hit a new high and closed at 4,509.37. 

The 10-year Treasury yield, which ran up this week into the Powell speech, eased slightly after the Fed chief’s remarks as he made clear that interest rate hikes would not immediately follow after tapering was over.

Powell also said inflation is solidly around the central bank’s 2% target rate, one of the goals of the Fed’s dual mandate. It has “much ground to cover” to reach its other goal of maximum employment, however, though there has “been clear progress” toward it, Powell added. The Fed has used the term “substantial further progress” as a benchmark for when it will start tightening policy.

U.S. stock futures were steady in early morning trading on Monday as investors readied for the final trading days of August.

Stocks could stay range-bound until the release of August's jobs report on Friday. Economists polled by Dow Jones expect 750,000 jobs were created in August and the unemployment rate fell to 5.2%.

Monday and Tuesday mark the last two trading days of August. Thus far, the S&P 500 is up 2.6% in August. The Dow Jones Industrial Average and the Nasdaq Composite rose 1.5% and 3.1% this month, respectively.

With the Fed’s Jackson Hole meeting in the rearview, investors are now focused on the direction of stocks for the final months of the year. 

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Plan A : Remain buy as long as oil price trades firmly above 68.7. Targets are 69.7 and 70.9.

Plan B : Consider short if oil price surges but fails to breach above 69.7. Targets are 68.8 and 67.4.