11/1/2021
US indices hit all-time highs at the open today led by tech and energy stocks and their strong earnings numbers. The Fed is expected to announce the start of their tapering on bond purchases by $15 billion which is not a very big amount compared to the $120 bn they've been purchasing each month since the crash in March 2020.
Our outlook
I think that this is good for the economy and investors now that the Fed thinks the economy doesn't need as much help as it did a year ago. I also think that for the rest of 2021, we may see a surge in stock prices up until the New Year because the Fed will not raise rates until at least 2022. And once, the Fed does that, we may start to see some heavy selling before the first raise.
Trade Setups
SPX500
SPX500 is flat now after touching new highs on the 1D chart with support lying beneath around the $4550s. We could see a minor pullback from the highs here, but it may turn into a small stair-like move as it looks like that has already started on this timeframe.
NAS100
NAS100 on the 1D came up above all-time highs from August and is flat right now like the S&P. Support lies around $15705 after a strong Friday last week. Additional support is around the $15500s.
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This week has brought more inflation data with it regarding the USD's PCE and PMI numbers. Powell is also set to speak this Friday about monetary policy going forward. The RBNZ will also release their latest interest rate news tomorrow with expectations of an unchanged rate at 5.5%. EdgeFinder Analysis GBPUSD is a bullish bias […]
This week is a big PMI week for Europe, UK and US. Additional inflationary metrics will add to the overall sentiment of these countries' monetary policies going forward. Here are some setups for the coming week on these currencies. EdgeFinder Analysis GBPCAD is now a +7 on the EdgeFinder as we wait for CPI news […]
