Macro view
The market expected that the FED on this occasion would not change the value of the interest rate. This had already been discounted in previous sessions. At a fundamental level, the US economy is undergoing a slowdown due also to the shutdown and this, together with the unclear monetary policy, is causing uncertainty. Investors want to see if this aggressive monetary policy can continue or if a period of stalemate has begun. The possibility of a rate cut if the situation remains stagnant.
Rates
For now it is very likely that interest rates can be resumed in the next FED meetings, as the indicators on which the FOMC is based are aimed at this. The rates can be cut towards the end of 2019 if the market does not liked this monetary tightening. This hypothesis would lead the indices to follow the strongly bearish December trend.
Index
At this time DOW JONES, (like SP500 and NASDAQ) tested the respective resistance area and was rejected downwards. The target to which it will aim in the very short term (if Powell makes it clear that there will be further increases soon) will be the area set at 25000 points, then continue towards 24200 if the level just mentioned should have been violated to the downside. The same goes for SP500, which will target 2640 points. The NASDAQ should go back to testing the 6900.
The market expected that the FED on this occasion would not change the value of the interest rate. This had already been discounted in previous sessions. At a fundamental level, the US economy is undergoing a slowdown due also to the shutdown and this, together with the unclear monetary policy, is causing uncertainty. Investors want to see if this aggressive monetary policy can continue or if a period of stalemate has begun. The possibility of a rate cut if the situation remains stagnant.
Rates
For now it is very likely that interest rates can be resumed in the next FED meetings, as the indicators on which the FOMC is based are aimed at this. The rates can be cut towards the end of 2019 if the market does not liked this monetary tightening. This hypothesis would lead the indices to follow the strongly bearish December trend.
Index
At this time DOW JONES, (like SP500 and NASDAQ) tested the respective resistance area and was rejected downwards. The target to which it will aim in the very short term (if Powell makes it clear that there will be further increases soon) will be the area set at 25000 points, then continue towards 24200 if the level just mentioned should have been violated to the downside. The same goes for SP500, which will target 2640 points. The NASDAQ should go back to testing the 6900.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.