Fed Slowdown
According to the November minutes, released Wednesday, the majority of Federal Reserve's officials believed that is soon necessary to slow down the interest rate hikes.
The minutes show that there is a high probability that the Fed, in the next meeting in December, will rise the interest rates by 50 basis points, stopping the run of 75 basis point increases.
After this news, stocks rallied and all the major U.S. indices have gone up on Wednesday.
S&P 500 Technical Analysis - Daily Chart
Today, the stocks are trading again into this key technical level.
In this chart, the green line is the 200-day moving average.
The last time it has been touched was in mid-August and has been declining ever since.
The prices are testing this 200-day moving average again today.
What will happen now?
The probabilities are in favour of positive stock performance over the next months.
Historically, equities always rise after one year from the midterm elections.
The RSI remains at 63, indicating a Bullish trend.
However, we need to be cautious right now, as the price has to break multiple resistance levels before turning to a bullish trend.
If the price can break above the 200-day MA, the next resistance levels are at 4086 and 4100.
FedWatch Tool - FED rates probabilities
63.9% of investors are expecting the FED to increase the interest rates by 0.50% in the next meeting.
The remaining 36.1% are expecting a 0.75% rate increase.
The data show us that the number of investors expecting an increase of 0.75% is higher than a week ago, despite the news from the FED meeting notes released yesterday.
No other options are considered at this stage.
The next FED meeting is on 14 December 2022.
Market closure
Today, 24 November 2022, the U.S. stock market will be closed and tomorrow Friday the market is open only for a limited time.
The volatility will be none or very low during these days of holidays.
According to the November minutes, released Wednesday, the majority of Federal Reserve's officials believed that is soon necessary to slow down the interest rate hikes.
The minutes show that there is a high probability that the Fed, in the next meeting in December, will rise the interest rates by 50 basis points, stopping the run of 75 basis point increases.
After this news, stocks rallied and all the major U.S. indices have gone up on Wednesday.
S&P 500 Technical Analysis - Daily Chart
Today, the stocks are trading again into this key technical level.
In this chart, the green line is the 200-day moving average.
The last time it has been touched was in mid-August and has been declining ever since.
The prices are testing this 200-day moving average again today.
What will happen now?
The probabilities are in favour of positive stock performance over the next months.
Historically, equities always rise after one year from the midterm elections.
The RSI remains at 63, indicating a Bullish trend.
However, we need to be cautious right now, as the price has to break multiple resistance levels before turning to a bullish trend.
If the price can break above the 200-day MA, the next resistance levels are at 4086 and 4100.
FedWatch Tool - FED rates probabilities
63.9% of investors are expecting the FED to increase the interest rates by 0.50% in the next meeting.
The remaining 36.1% are expecting a 0.75% rate increase.
The data show us that the number of investors expecting an increase of 0.75% is higher than a week ago, despite the news from the FED meeting notes released yesterday.
No other options are considered at this stage.
The next FED meeting is on 14 December 2022.
Market closure
Today, 24 November 2022, the U.S. stock market will be closed and tomorrow Friday the market is open only for a limited time.
The volatility will be none or very low during these days of holidays.
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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.