Global & US stocks awaiting FED monetary policy

Global & US stocks awaiting FED monetary policy

S&P 500, Dow Jones Industrials & Nasdaq Composite trending points

  • Waning S&P 500 had been trading around February lows, FOMC in focus
  • Dilapidated Dow-Jones Industrial has been testing several lows earlier from this year
  • So far, Nasdaq Composite is holding on, trading around a neutral line

Global and US stocks looking forward to FED monetary policy, FED unlikely to hike rate

In the past couple of sessions, today, the 19thof December, GMT. 12.00, the standard and poor 500 had been surfing around the February lows, which happened to be an important spot and from where, an upwind momentum is likely to launch. The FED monetary policy would be an interesting catalyst to look forward to, as a pause in the rate hike is likely to happen in the later part of the day.

Looking forward to the technical levels, the market is long overdue for a rebound, and the oversold market could smoothen with the upward momentum. In this standpoint, only a hawkish FED could jolt the market more downwards. Otherwise, a corrective bias is likely to stay away. A bounce in the later part of the day could lift up an advance to 2600-2650. While this report is being prepared, the S&P 500 is residing at $2,555.44.

The S&P 500 daily chart

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S&P 500 daily chart

Nasdaq composite has been holding on to a slightly better price and it has been trading above November lows, just a bit above the yearly lows. The general market trend appeared to be downward, yet a bounce from here is likely to happen.

Nasdaq 100 daily price chart

Nasdaq 100 daily chart

While S&P 500 and Nasdaq composite had been surfing just above the yearly lows, the Dow Jones Industrials are testing closer-to-yearly lows several times. At this moment, the Dow Jones had remained dithered around 23530-23380 and a chance of rebound is markedly rising.

Dow Jones Industrial daily chart

Dow Jones industrial daily chart

Bottom line

Despite squeezed global economy and declined demand, the US stocks might start an upsurge at the later part today, the 19thof December. However, the market momentum is largely dependant upon the FED monetary policy.

There had been a number of points in favour of a dovish FED rate, that could initiate an abrupt upward momentum including intense pressure from the US lawmakers and US president Donald Trump himself. Concomitantly, yesterday, the 18thof December, the US president again warned the FED chair Jerome Powel “not to make another mistake” regarding monetary policy, as inflation rate is closer to the central bank’s target and an aggressive rate could only deteriorate the momentum.

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[Disclaimer: The content of this article is personal opinion and should not be considered as investment advice or suggestion towards any trading activity.]


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