Nick Batsford, CEO of Tip TV, opened the Tip TV Finance Show alongside Zak Mir, technical analyst for ShareProphets.com, and Bill Hubard, chief economist for Bullion Capital, to discuss the impending FOMC announcement, as well as outlooks on the S&P 500, the FTSE 100, the NYSE Bullish, Gold and Cable.
Will the Fed hike today?
Hubard outlined how the Fed had one option, and now have around five. He continued that he believes the Fed will still hike by 25 basis points this evening, but also raised the possibility that it could be the first time in over 100 years that a 12.5 basis point interest rate hike could be seen in the US. Hubard noted that no hike today could result in Yellen announcing a press conference in October, in a means to try and remove some uncertainty from the market.
Whilst on rate hikes, Mir added that Carney will continue to wait until the Fed move on interest rates, and that the Bank of England will not be raising interest rates any time soon.
S&P 500 rallied 1.3% yesterday
Batsford commented that the S&P 500 neared its base activation level, with less than 1% needed to ignite the bullish sup and handle bottom.
NYSE bullish % has reversed
Batsford highlighted the reversal on the NYSE bullish % from its oversold signal, with more buy signals being introduced.
FTSE 100 has to be a buy
With the sentiment indicator from Stocktwits showing 13% bullish on the FTSE 100, Mir highlighted that this has to be a buy. He continued that a 50% retracement from the move down in August has occurred, with 6250 proving a key level.
Gold not making sense
When concerning Gold, Mir noted the higher support towards 1100, but the charts show a possible rally to 1150, which doesn’t make sense as gold should get weaker with higher interest rates.
Cable back to bullish
Mir finished on GBPUSD, and outlined how Cable is back to bullish, with the opportunity to buy down to the support level at 1545, but we are still waiting for it to break the 50 day moving average.