US30 D1 - 15.01.24

The U.S. stock markets, starting a rally with the conclusion of interest rate hikes, experienced a rapid surge, as mentioned in our DXY analysis linked to the reasons we specified.

The relentless ascent of the US30, rising up to the significant resistance level of the 161.8% Fibonacci technical level in the recent drop, was unable to surpass this crucial barrier. The slightly higher-than-expected core consumer inflation data might lead to a softening of expectations among investors and consequent profit realizations.

Our expectation of a correction decline, supported by both technical and fundamental indicators, is crucial for the market to find more buyers and transition into a healthier uptrend process. While we don't anticipate an overall downtrend in all U.S. markets, we do expect an acceptable correction decline for a sustainable uptrend. We believe that, unless there are significant negative developments, this corrective movement, once completed, will be part of the upward trend, eventually reaching new highs.