Indices

Markets reacted positively to the fact that Fed Chair Powell did not comment on monetary policy yesterday, now awaiting Thursday’s CPI inflation

The daily CHN50 chart is trading in its bullish area between the upper blue and red bands. Maintaining the upper channel increases the likelihood of price appreciation. The red Bollinger bands are moving in opposite directions, which shows a growing volatility. The hourly chart shows the stochastic has crossed up (aqua ellipse). A move towards the 80+ region (blue arrow) will suggest a positive momentum. A cross by the trend-following…

The monthly chart of FXCM’s CHN50 CFD is showing value tendencies. It spent 12 months in its bearish channel (notwithstanding a temporary spike in June 2022), between its lower blue and red bands. The current candle is attempting to move into its neutral channel between the blue bands (green vertical rectangle). This is bullish. The monthly RSI still needs to cross above 50 into the indicator’s bullish area (blue arrow).…

The US30 dropped 165 points yesterday. This followed the ADP surprise to the upside, showing 235K jobs were created (153K - forecast). This prompted renewed rate hike fears, given the Fed concern over wage inflation.

The GER30 daily chart is trading in its bullish area between the upper blue and red bands. The Bollinger bands are expanding (black ellipses). This suggests increasing volatility. The hourly chart on the right has underlying support at the central pivot, P. If the trend-following EMAs and momentum based stochastic cross up (green ellipses), this will be viewed as a bullish development. If stochastic makes its way above the 80…

The US index slumps in the aftermath of last week’s hawkish Fed rhetoric, facing renewed pressure today, as the Bank of Japan surprised investors with a tweak in its yield policy

The German index comes from its worst week since September, as the European Central Bank delivered a hawkish message, expecting more rate hikes ahead and steep economic slowdown

The US Federal Reserve downshifted to a smaller rate increase on Wednesday, but signaled more tightening ahead, projecting a higher terminal rate

FXCM's US30 CFD climbed 2% yesterday. This appreciation moved the index from its weak zone, between the lower blue and red bands, into its neutral region, between the blue bands (green square). On a relative basis, this is a movement of strength.

The NAS100 daily chart (left) trades at support (green-shaded horizontal). This zone is around the 11,500 level

The broader US index is having a bad week as market seem to be nervous around the global economy, despite the fact that China has been relaxing its zero-Covid policy