Hello everyone. NQ has performed well since March 16th after Fed's decision to raise interest rate for the first time since the end of 2018.
The moderate 25 bps hike calmed investors a bit. However, I did notice the decreased volume since then, indicating investors may take a wait-and-see attitude against the backdrop of high inflation. Fed will definitely do more to prevent it from going higher. The possibility of 50bps hike is likely for the next meeting.
If we look at the US10Y yield, it's approaching 2.5% in a fast manner. I'm sort of concerned if it keeps going up to the next key level, say, 3%. That might trigger another selloff due to the DCF issues. By the way, from the US10Y yield chart below, I can conclude that the focus was shifted from the war to inflation & growth.
In the short term, I'm expecting the tech-heavy index to revisit demand zone(13800-14000) to have a beautiful leg-out.
What do you think?
The moderate 25 bps hike calmed investors a bit. However, I did notice the decreased volume since then, indicating investors may take a wait-and-see attitude against the backdrop of high inflation. Fed will definitely do more to prevent it from going higher. The possibility of 50bps hike is likely for the next meeting.
If we look at the US10Y yield, it's approaching 2.5% in a fast manner. I'm sort of concerned if it keeps going up to the next key level, say, 3%. That might trigger another selloff due to the DCF issues. By the way, from the US10Y yield chart below, I can conclude that the focus was shifted from the war to inflation & growth.
In the short term, I'm expecting the tech-heavy index to revisit demand zone(13800-14000) to have a beautiful leg-out.
What do you think?
Note
Finally it retreated to my zone and bounced back
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plan your trade and trade your plan
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.