US30 NEUTRAL TO BEARISH SCENARIO
U.S. stocks began the last week of August with gains, influenced by Federal Reserve Chair Jerome Powell's recent speech and upcoming economic reports. The Dow Jones was up 0.5%, the S&P 500 rose 0.3%, and the NASDAQ Composite increased 0.4% by 11:10 ET.
Powell's speech at the Jackson Hole symposium advocated for steady interest rates but hinted at possible "further tightening" if needed to control inflation.
The Fed Rate Monitor Tool predicted an 80% chance of maintaining rates in September and almost 50% odds of a 0.25% rate hike in November.
This week, the Fed will analyze inflation through the personal consumption expenditure index and assess the nonfarm payrolls report for August to understand potential impacts of rate hikes on job growth.
On a technical front, MACD and RSI are showing sell signals, showing that the bulls are not strong yet and any economic data, exceeding the forecast, might plunge the index back in bearish territory.
As a pivot point might be considered 34393.7, from where the price might plunge and test 33807.95, but if the current trend continues, the price might test its resistance at 35197.30
Risk Disclosure: Trading Foreign Exchange (Forex) and Contracts of Difference (CFD's) carries a high level of risk. By registering and signing up, any client affirms their understanding of their own personal accountability for all transactions performed within their account and recognizes the risks associated with trading on such markets and on such sites. Furthermore, one understands that the company carries zero influence over transactions, markets, and trading signals, therefore, cannot be held liable nor guarantee any profits or losses.
Powell's speech at the Jackson Hole symposium advocated for steady interest rates but hinted at possible "further tightening" if needed to control inflation.
The Fed Rate Monitor Tool predicted an 80% chance of maintaining rates in September and almost 50% odds of a 0.25% rate hike in November.
This week, the Fed will analyze inflation through the personal consumption expenditure index and assess the nonfarm payrolls report for August to understand potential impacts of rate hikes on job growth.
On a technical front, MACD and RSI are showing sell signals, showing that the bulls are not strong yet and any economic data, exceeding the forecast, might plunge the index back in bearish territory.
As a pivot point might be considered 34393.7, from where the price might plunge and test 33807.95, but if the current trend continues, the price might test its resistance at 35197.30
Risk Disclosure: Trading Foreign Exchange (Forex) and Contracts of Difference (CFD's) carries a high level of risk. By registering and signing up, any client affirms their understanding of their own personal accountability for all transactions performed within their account and recognizes the risks associated with trading on such markets and on such sites. Furthermore, one understands that the company carries zero influence over transactions, markets, and trading signals, therefore, cannot be held liable nor guarantee any profits or losses.