US stocks performed well yesterday
On Tuesday, the US stock markets rose after the CPI data.
All the major indices, S&P 500, Nasdaq and Dow Jones have reported gains of 0.73%, 1.01% and 0.30% respectively.
The positive movement has been driven by the CPI data released yesterday showing better than expected inflation numbers.
The inflation forecast was at 7.3% and the actual data has been 7.1%.
The Fed's decision is today
Today at 7 PM GMT, we will hear the Federal Reserve's decision on the next interest rate hike.
The Consumer Price data, released yesterday, show that the worst of the inflation is probably passed and for the Fed is easier to moderate the pace of the interest rate hikes.
It is projected that there will be a rate increase of 0.5% after four consecutive hikes of 75 basis points.
Investors are expecting a pivot however that doesn't mean that the Fed is ending its fight against inflation.
Jerome Powell is very likely to announce that the rates will go higher than previously forecasted.
Markets will react accordingly and it will be very volatile today.
S&P 500 Technical Analysis - Daily Chart
The S&P 500 price jumped right after the release of the CPI data, however, the index lost most of its gains yesterday and closed the day just below the 200-day MA (green moving average).
This means that sellers are still active and they are pushing prices lower at every resistance level.
Today will likely be crucial for the market as it might set the next direction for the short term.
As mentioned, the FED decision today will move markets in any direction.
If the S&P 500 price is able to break and stay above the 4100 level, it would be a positive sign that will likely push prices higher in the upcoming days.
Otherwise, if the price gets rejected at the resistances, we can expect a retest of the support at 3900.
If that support will not hold, prices will fall to the 50-day MA (red moving average).
The RSI stands at 56, indicating a bullish trend.
Sentiment Indicator - Fear & Greed Index
The market sentiment is at 61 in the "Greed" mode which is higher than the level registered one week ago.
FedWatch Tool - FED rates probabilities
79.4% of investors are expecting the FED to increase the interest rates by 0.50% today.
The remaining 20.6% are expecting a 0.75% rate increase.
The data show us that the number of investors expecting an increase of 0.50% is higher than in the previous days.
The next FED meeting is today.
On Tuesday, the US stock markets rose after the CPI data.
All the major indices, S&P 500, Nasdaq and Dow Jones have reported gains of 0.73%, 1.01% and 0.30% respectively.
The positive movement has been driven by the CPI data released yesterday showing better than expected inflation numbers.
The inflation forecast was at 7.3% and the actual data has been 7.1%.
The Fed's decision is today
Today at 7 PM GMT, we will hear the Federal Reserve's decision on the next interest rate hike.
The Consumer Price data, released yesterday, show that the worst of the inflation is probably passed and for the Fed is easier to moderate the pace of the interest rate hikes.
It is projected that there will be a rate increase of 0.5% after four consecutive hikes of 75 basis points.
Investors are expecting a pivot however that doesn't mean that the Fed is ending its fight against inflation.
Jerome Powell is very likely to announce that the rates will go higher than previously forecasted.
Markets will react accordingly and it will be very volatile today.
S&P 500 Technical Analysis - Daily Chart
The S&P 500 price jumped right after the release of the CPI data, however, the index lost most of its gains yesterday and closed the day just below the 200-day MA (green moving average).
This means that sellers are still active and they are pushing prices lower at every resistance level.
Today will likely be crucial for the market as it might set the next direction for the short term.
As mentioned, the FED decision today will move markets in any direction.
If the S&P 500 price is able to break and stay above the 4100 level, it would be a positive sign that will likely push prices higher in the upcoming days.
Otherwise, if the price gets rejected at the resistances, we can expect a retest of the support at 3900.
If that support will not hold, prices will fall to the 50-day MA (red moving average).
The RSI stands at 56, indicating a bullish trend.
Sentiment Indicator - Fear & Greed Index
The market sentiment is at 61 in the "Greed" mode which is higher than the level registered one week ago.
FedWatch Tool - FED rates probabilities
79.4% of investors are expecting the FED to increase the interest rates by 0.50% today.
The remaining 20.6% are expecting a 0.75% rate increase.
The data show us that the number of investors expecting an increase of 0.50% is higher than in the previous days.
The next FED meeting is today.
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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.
Related publications
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.