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.
Gold is up nearly half a percent today while USD down a third of one as of 10:18 am EST. As we wait for the upcoming and looming NFP numbers this Friday, we can assess the economic data we already have. EdgeFinder Analysis The stock market sighed in relief after the debt ceiling bill finally […]
The dollar flew higher last week as a result of resilient economic news along with a higher PCE than expected. Now the DXY has reached a decision point in price action. This week's NFP will help determine the sentiment around the potential June rate hike. Here is what we are looking at: EdgeFinder Analysis USDCAD […]
Considerably dovish news from central banks in the US and New Zealand has caused a major stir in the markets. Governor Orr and Vice Chairman Powell both released some reassuring news for the economy in the long term. But what does this mean for USD and NZD? EdgeFinder Analysis GBPNZD is a pair that should […]
