Indices

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

The German index is on the back foot this week, but the formation of a Golden Cross on the daily chart, shows potential for further advance

FXCM's US30 CFD has charted a bullish 1-2-3 pattern on the weekly scale. It seems to be in the midst of its next impulse move. To this end, we note that the stochastic has pushed into the upper quintile (blue arrow). The longer it stays in this region, the greater the chances of an impulse swing.

The NAS100 remains positioned in its bullish channel, between the upper blue and red bands. The market responded positively to Fed Chair Powell's Brooking Institution delivery, and a long blue candle was charted two days ago (green vertical rectangle).

Wall Street rallied on Wednesday, after Mr Powell’s remarks cemented market expectations for a smaller hike by the Fed, but steadies today ahead of the PCE Inflation update