FOMC Preview-Last Week S & P500 and DAX30 Forecast

DAX 30 and S & P 500 FORECAST: Neutral

  • NS FOMC The meeting is the main event of next week’s calendar
  • Stock prices fall as expectations for the possibility of taper announcements increase

There is one event that will come to everyone next week. It’s the FOMC. The Federal Reserve Board will meet on Tuesday and Wednesday to discuss its monetary policy amid rising fundamental expectations. Central banks have been facing rising prices for some time, but the latest CPI readings have shown that price peaks may have passed.

As a result, investors are currently facing a dilemma. The Fed states that two conditions must be met in order to begin tapering assets. One is the employment market, which is constantly disappointed with the creation of less jobs than expected as job vacancies surge. The other is inflation, which has met the requirements for some time, but now seems to be a little depressed. And since the Fed is known to curb demand for delayed asset purchases and rising interest rates, it’s strange to think that investors are a little worried about the central banks they are actually offering at this conference. Not.

The stock market keeps the card close to the chest and a narrow range is heading towards this week. Nasdaq And that S & P 500 After months of continuous out performance. Even more weaknesses may be seen as the Fed stays on the hawkish side earlier in the week, squeezing market liquidity and positioning itself as a result that could sell out stocks. You won’t be surprised.

Main levels of S & P500

The S & P 500 has fallen below 4,500 and has continued to decline slightly, struggling to recover. An important test is to fall below the uptrend line support that has been in place since October 2020. As pullbacks deepen, 4,400 levels can be at risk, raising questions about the continuation of the bullish channels we’ve seen so far. From the beginning of the year. Below August’s lows of 4,352 is a sign of concern that momentum may have changed in the medium term.

S & P 500 daily chart

S & P500 chart

Major levels of DAX30

NS DAX 30 DAX40 from Sunday evening – has shown signs of bearish since it hit a record high of over 16,000 in mid-August, but bearish momentum recovered with last week’s sellout. A directional test is the 127.2% Fibonacci extension (15,424), which has provided good support for the past few months. Below this area, buyers may fall towards 14,815, but there may be some support areas along the way, such as the 200-day SMA 15,180 and 15,000 psychological marks.

DAX 30-day chart

DAX30 chart

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— by market analyst Daniela Sabin Hathorn

Follow Daniela on Twitter@HathornSabin

FOMC Preview-Last Week S & P500 and DAX30 Forecast

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