US stocks tumbled broadly after Fed raised interest rate by 75bps overnight, and indicated that rate could reach 4.4% by year end. Chair Jerome Powell reiterated that pledge that “the FOMC is strongly resolved to bring inflation down to 2%, and we will keep at it until the job is done.” Meanwhile, against members’ expectations, “we have seen some supply side healing but inflation has not really come down,” he noted.
DOW’s -1.70% decline indicates that fall from 34281.36 is extending and break of 30k handle would be seen soon. Such fall is seen as part of the whole medium term corrective pattern from 36952.65. Near term outlook will stay bearish as long as 31026.89 resistance holds. Next target is a retest of 29653.29 low. Firm break there will target 100% projection of 36952.65 to 29653.29 from 34281.36 at 26982.00. There’s where the correction would probably end.