The FOMC has just released its interest rate decision and as expected, the Fed has left rates unchanged at the 0.0-0.25% band. This is in keeping with the expectations of the markets and is also in tandem with my expectations as disclosed in my earlier analysis.
Highlights of FOMC Chair Powell’s Speech
The key highlights of the speech by FOMC Chair Fed Powell are that the Fed will not be raising rates anytime soon, and the financial support for the US economy being delivered through QE were going to be sustained for quite some time.
Here are some quotes:
“It’s okay Fed is moving into lending areas that carry more risk; up to treasury to decide how remainder of Cares Act fund is deployed.”
“Will not speculate how long rates might stay near zero…Fed is going to be very patient and in no hurry to raise rates.”
“Not focused on level of asset prices but on market functioning…Fed is not going to be in any hurry to withdraw support for economy.”
“Treasury still has plenty of equity from Cares Act to expand any facilities if demand is greater than expected.”
Technical Outlook for Nasdaq 100
The FOMC Chairman’s speech is galvanizing investors on the Nasdaq 100 to make a decisive push above the 8945.7 resistance. That level has been violated by the daily candle and there is hope for a penetrative close above this level today. A follow-up move tomorrow which keeps price above 8945.7 confirms the breakout the market has been waiting for, opening the door towards 9092.3 initially.
Failure to sustain the breakout move could allow for a pullback towards 8691.0, keeping the Nasdaq within the 8442.5 – 8945.7 broader range.
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Technical Outlook for Nasdaq 100
The FOMC Chairman’s speech is galvanizing investors on the Nasdaq 100 to make a decisive push above the 8945.7 resistance. That level has been violated by the daily candle and there is hope for a penetrative close above this level today. A follow-up move tomorrow which keeps price above 8945.7 confirms the breakout the market has been waiting for, opening the door towards 9092.3 initially.
Failure to sustain the breakout move could allow for a pullback towards 8691.0, keeping the Nasdaq within the 8442.5 – 8945.7 broader range.
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