Russell Shor

Hollywood writers have agreed to end their strike action. The strike ended in the early hours of Wednesday morning.

Similar to yesterday’s article, the NAS100 is also showing worrying signs of technical weakness. Like the SPX500, the NAS100 has charted a lower peak followed by a lower trough. This puts the growth index into a defined downtrend. Its weekly RSI has also dipped below 50, which is on the bearish side of the indicator. If it maintains below 50 for an extended period, the NAS100 will be under pressure.

As we head towards the conclusion of Q3 at the end of the month, the SPX500 has flashed a serious warning sign. The index has charted a lower peak followed by a lower trough on the weekly times frame. This is a defined downtrend.

Pullback may set up a "dip in the uptrend" scenario.

The US 10-year real rate has supported FXCM’s USDOLLAR basket. As the real rate has moved up, so has the USDOLLAR. The correlation coefficient between the two is a robust 84%. This is not surprising. The higher real yield is likely to exert pressure on the risk side of the market, with the dollar benefitting as a safe-haven.

Weakness is starting to seep into the NAS100, with the index charting a lower peak.

The Federal Reserve's policy committee decided to keep its interest-rate target unchanged yesterday and expressed confidence in the ongoing strength of the economy. They conveyed a hawkish message regarding the near and medium term.

Today’s FOMC statement and press conference will affect financial markets, with its tone being of particular importance. The market wants to know how long rates will be at elevated levels.

Gold is resilient ahead of the FOMC policy meeting.

The effects of the strike are starting to be felt, with FXCM’s US Automobiles basket starting to show signs of pressure.

Oil prices are rising today due to concerns about a potential supply shortage. Saudi Arabia and Russia announced they would continue reducing their oil production until the end of the year.