Daily US Market Comments 09 Aug 2066 by MastersoEquity.com
FUNDAMENTALS
The Feds have indeed paused interest rate hikes as widely anticipated yesterday. This is the first time interest rates have taken a pause since 18 fed meetings ago. However, as "I" have anticipated, this news indeed failed to bring about a much anticipated rally but instead led to a profit taking that took the markets back down by the end of the day. Much of this interest rate pause have been priced in so far and along with the dovish comments that Feds will watch inflation very closely and hike rates if necessary in the future, led to a more bearish environment for the markets.
TECHNICALS
Even though markets were down yesterday, its overall movement is still sideways on a weekly basis with inclination to downside. NASDAQ looks ready to move down further into its down trend channel should the drop follows up today. The Dow could still put up a fight at this level as it was off its lows significantly by end of the trading day. Thats said, markets remain largely overbought and at these new 2 month highs, it does leave doubt as to how much momentum are there to top side.
The Feds have indeed paused interest rate hikes as widely anticipated yesterday. This is the first time interest rates have taken a pause since 18 fed meetings ago. However, as "I" have anticipated, this news indeed failed to bring about a much anticipated rally but instead led to a profit taking that took the markets back down by the end of the day. Much of this interest rate pause have been priced in so far and along with the dovish comments that Feds will watch inflation very closely and hike rates if necessary in the future, led to a more bearish environment for the markets.
TECHNICALS
Even though markets were down yesterday, its overall movement is still sideways on a weekly basis with inclination to downside. NASDAQ looks ready to move down further into its down trend channel should the drop follows up today. The Dow could still put up a fight at this level as it was off its lows significantly by end of the trading day. Thats said, markets remain largely overbought and at these new 2 month highs, it does leave doubt as to how much momentum are there to top side.
posted by Jason Ng at 8:11 PM
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