By ForexTime
- NQ100_m hits fresh 2023 high yesterday
- Index could be rocked by looming Fed decision
- Bulls in control but RSI overbought on D1 chart
- Levels of interest at 16770.6, 16100 & 15800
The NQ100_m jumped to a fresh 2023 high in the previous session after signs of slowing inflation supported hopes around the Fed cutting interest rates next year.
November’s inflation report painted a mixed picture with annual consumer prices slipping to 3.1%, down from 3.2% in October. The annual core figure, which strips out volatile energy and food prices rose by 4% in line with the prior month. However, the monthly core figure rose 0.3%, slightly faster than 0.2% in the previous month.
While traders are still pricing in a 25-basis point cut by May 2024, this could be influenced by the Fed decision later today.
As highlighted in our week ahead report, the central bank is widely expected to leave rates unchanged, so focus will be on the updated economic projections, “dot plot” and Powell’s press conference.
Whatever the outcome of the Fed meeting, it could rock the NQ100_m which is filled with tech stocks that remain sensitive to interest rates.
Redirecting our attention back to the technicals…
The NQ100_m is respecting a bullish channel on the weekly charts with the next key level at the all-time high of 16770.6 created back in November 2021.
Free Reports:
Get our Weekly Commitment of Traders Reports - See where the biggest traders (Hedge Funds and Commercial Hedgers) are positioned in the futures markets on a weekly basis.
Sign Up for Our Stock Market Newsletter – Get updated on News, Charts & Rankings of Public Companies when you join our Stocks Newsletter
It is a similar story on the daily charts with bulls clearly in a position of power. There have been consistently higher highs and higher lows while prices are trading well above the 50, 100, and 200-day SMA. However, the Relative Strength Index (RSI) is trading above 70, signalling that prices are heavily overbought, suggesting a potential throwback down the road.
Should 16100 prove to be reliable support, this may provide a foundation for bulls to charge towards 16770.6
A move back below 16100 could trigger a selloff towards 15800 and 15540.
Article by ForexTime
ForexTime Ltd (FXTM) is an award winning international online forex broker regulated by CySEC 185/12 www.forextime.com
- Stock indices have hit all-time highs. The Australian labor market is starting to cool down May 16, 2024
- Target Thursdays: USDInd, Soybean & EU50 hit targets! May 16, 2024
- JPY has sharply strengthened May 16, 2024
- PBoC kept the interest rate unchanged. The US stock indices rise despite rising manufacturing inflation May 15, 2024
- Meme-stock mania: Will GameStop, AMC stocks surge even higher? May 15, 2024
- Euro climbs to five-week high ahead of US CPI data May 15, 2024
- Australia will release its annual budget today. Rising inflation expectations hurt US stock indices May 14, 2024
- JPY declines again May 14, 2024
- Trade of the Week: CHINAH to extend lead as Asia’s winner? May 13, 2024
- The German index has hit an all-time high. China sees rising consumer inflation May 13, 2024