Yesterday's trade started on a more upbeat note. A range-bound trade had the main indices modestly higher with the SPX pushing past its 200-day moving average (4,032). Things deteriorated quickly, however, in the wake of the decision to raise the target range for the fed funds rate by 50 basis points to 4.25% - 4.50%. Fed officials penciled in 5.25% as the top end for its benchmark rate throughout 2023. That's higher than their forecast of 4.75% in September. Seven Fed officials expect rates to go even higher, with two seeing rates topping out at 5.75%. One hawkish official sees rates staying at that level through 2025, according to the statement. Fed Chair Powell and other FOMC members on Wednesday indicated they still want to see concrete progress in getting inflation moving down to their 2% annual target.
Chart: SPX 15 mins
From tech side of analysis, in morning session, the market tried to hold 4000ish and moving towards its slipping resistance 4050ish, so market is ready to break up if there's something not that hawkish. However, it looks like Fed chair Powell is a fan of chaos, and he "set" a pivot high for SPX. Even though the market pulled back and closed above 3970ish, it still gave an ugly Doji on the daily chart. In my opinion, since a 50 point rate hike has already been priced at the market price, therefore, market retracement is avoidless.
Chart: QQQ daily
QQQ looks quite different compared to SPX, and something we might have overlooked was QQQ broke the prior highs on daily, which was a solid trend confirmed. The QQQ has underperformed the SPY since bottoming process in early October. I already mentioned we should focus on "low tech buying opportunities" And I am still insist my opinion!
And I already add more AMZN in my account.
Analysis relates to QQQ and AMZN:
Technology is not dying!
AMZN: Great Buying among Marker Fears
Please feel free to express your ideas and thoughts in the comment section.
From tech side of analysis, in morning session, the market tried to hold 4000ish and moving towards its slipping resistance 4050ish, so market is ready to break up if there's something not that hawkish. However, it looks like Fed chair Powell is a fan of chaos, and he "set" a pivot high for SPX. Even though the market pulled back and closed above 3970ish, it still gave an ugly Doji on the daily chart. In my opinion, since a 50 point rate hike has already been priced at the market price, therefore, market retracement is avoidless.
QQQ looks quite different compared to SPX, and something we might have overlooked was QQQ broke the prior highs on daily, which was a solid trend confirmed. The QQQ has underperformed the SPY since bottoming process in early October. I already mentioned we should focus on "low tech buying opportunities" And I am still insist my opinion!
And I already add more AMZN in my account.
Analysis relates to QQQ and AMZN:
Please feel free to express your ideas and thoughts in the comment section.