NASDAQ closed strongly up by 2.00% overnight to close at 11816.31. Fed’s 25bps rate hike was well received by investors, with Chair Jerome Powell admitting that “we can now say for the first time that the disinflationary process has started.”
Suggested readings on FOMC:
- An End to the Tightening Cycle is on the FOMC’s Horizon
- FOMC Hikes Rates and Signals Yet More to Come
- FOMC Meeting Recap: Powell Not Hawkish Enough, Traders Price in 50bps of Cuts by EOY
- EUR/USD upside breakout as Fed Powell said disinflationary process has started
- FOMC Hikes Policy Rate by 25 Basis Points, Signals More to Come
NASDAQ’s break of 11571.64 resistance completes a double bottom pattern (10088.82, 10207.47). Near term outlook will stay bullish as long as 55 day EMA (now at 11043.84) holds. Next target is 38.2% retracement of 16212.22 to 10088.82 at 12427.95.
It’s still a bit early to tell if NASDAQ is in correction to the down trend from 16212.22, or in bullish reversal. Key level lies in 13181.08 cluster resistance, 50% retracement at 13150.52. Reactions from there will reveal which case it is.
