InvestMate|S&P 500 Will we continue the uptrend?
Updated
📈S&P 500 Will we continue the uptrend?
📈After the US rate hike of 75 points on 2 November, the market is assuming that the next one will only be 50 points, and looking at the economic situation, the Fed doesn't have such a push for rate hikes anymore.
📈In the US where inflation has been slowing for over 4 months now and the next reading will be on 10 November. Which puts an effective brake on future rate hikes.
📈Looking at the last few weeks, we see clear signs of a weakening dollar appreciation trend and the market is slowly discounting the gradual weakening of the dollar against other currencies.
📈Looking at the major US indices and equities. The slow deceleration in interest rates and an improving economy is poised to translate positively into the performance of major companies which will push their valuations higher.
📈Turning to the chart.
📈We have been in a downtrend since 4 January this year.
📈Taking a look at the weekly chart and measuring the waves from the covid bottom we see that we have already made practically a 50% decline from the peak which at the lowest level was -27.56%
📈 Looking at the overall structure of this downtrend which is characterised by large upward corrections. I can confidently say that we are at a price point where the price can find solid support that is hard to break through.
📈Looking at the local perspective where we have already made a 50% wave correction from bottom to top, and the fact that we are on a strong support zone. Allows us to believe that it is currently time for an upward impulse
📈Yesterday's price turbulence related to the FED's interest rate hike in the US. They were impulsive in nature. First we got what the market was expecting, i.e. a 50pc interest rate hike, which was not as big as it had been in the past, then Jay Powell warned the market that his stance remained hawkish, which caused the dollar to suddenly weaken, after which it strengthened significantly again.
📈It looked like a typical speculative move.
📈For this we flashed a descent to really attractive levels on the US indices, allowing us to conclude that the coveted major correction in the uptrend has already taken place.
📈I encourage you to keep an eye on this index, as demand for the dollar slows down and the economic climate gets better, increases in equity valuations are inevitable.
🚀If you appreciate my work and effort put into this post I encourage you to leave a like and give a follow on my profile.🚀
📈After the US rate hike of 75 points on 2 November, the market is assuming that the next one will only be 50 points, and looking at the economic situation, the Fed doesn't have such a push for rate hikes anymore.
📈In the US where inflation has been slowing for over 4 months now and the next reading will be on 10 November. Which puts an effective brake on future rate hikes.
📈Looking at the last few weeks, we see clear signs of a weakening dollar appreciation trend and the market is slowly discounting the gradual weakening of the dollar against other currencies.
📈Looking at the major US indices and equities. The slow deceleration in interest rates and an improving economy is poised to translate positively into the performance of major companies which will push their valuations higher.
📈Turning to the chart.
📈We have been in a downtrend since 4 January this year.
📈Taking a look at the weekly chart and measuring the waves from the covid bottom we see that we have already made practically a 50% decline from the peak which at the lowest level was -27.56%
📈 Looking at the overall structure of this downtrend which is characterised by large upward corrections. I can confidently say that we are at a price point where the price can find solid support that is hard to break through.
📈Looking at the local perspective where we have already made a 50% wave correction from bottom to top, and the fact that we are on a strong support zone. Allows us to believe that it is currently time for an upward impulse
📈Yesterday's price turbulence related to the FED's interest rate hike in the US. They were impulsive in nature. First we got what the market was expecting, i.e. a 50pc interest rate hike, which was not as big as it had been in the past, then Jay Powell warned the market that his stance remained hawkish, which caused the dollar to suddenly weaken, after which it strengthened significantly again.
📈It looked like a typical speculative move.
📈For this we flashed a descent to really attractive levels on the US indices, allowing us to conclude that the coveted major correction in the uptrend has already taken place.
📈I encourage you to keep an eye on this index, as demand for the dollar slows down and the economic climate gets better, increases in equity valuations are inevitable.
🚀If you appreciate my work and effort put into this post I encourage you to leave a like and give a follow on my profile.🚀
Note
Nice oneTrade active
Flies beautifullyNote
Lets go babyNote
I think it's time for some corection
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