Breaking News
Investing Pro 0
NEW! Get Actionable Insights with InvestingPro+ Try 7 Days Free

Wall Street rose after the release of the Fed November's meeting minutes

By Federica MontellaStock MarketsNov 24, 2022 11:24
uk.investing.com/analysis/wall-street-rose-after-the-release-of-the-fed-novembers-meeting-minutes-200548277
Wall Street rose after the release of the Fed November's meeting minutes
By Federica Montella   |  Nov 24, 2022 11:24
Saved. See Saved Items.
This article has already been saved in your Saved Items
 

Fed Slowdown

According to the November minutes, released Wednesday, the majority of Federal Reserve's officials believed that is soon necessary to slow down the interest rate hikes.

The minutes show that there is a high probability that the Fed, in the next meeting in December, will rise the interest rates by 50 basis points, stopping the run of 75 basis point increases.

After this news, stocks rallied and all the major U.S. indices have gone up on Wednesday.

S&P 500 Technical Analysis - Daily Chart



Today, the stocks are trading again into this key technical level.

In this chart, the green line is the 200-day moving average.

The last time it has been touched was in mid-August and has been declining ever since.

The prices are testing this 200-day moving average again today.

What will happen now?

The probabilities are in favour of positive stock performance over the next months.

Historically, equities always rise after one year from the midterm elections.

The RSI remains at 63, indicating a Bullish trend.

However, we need to be cautious right now, as the price has to break multiple resistance levels before turning to a bullish trend.

If the price can break above the 200-day MA, the next resistance levels are at 4086 and 4100.

Nasdaq 100 Technical Analysis - Daily Chart



The Nasdaq 100 is currently testing the downtrend blue line.

It looks like it has already broken to the upside, but I would wait for a few days for confirmation.

If the price can stay above the downtrend line, it would be a bullish sign.

In August, the price broke above the trendline but it moved again back below it, creating a fake breakout.

The 50-day MA (red moving average) and the 21-day MA (blue moving average) are currently working as support.

It is important to follow the movements of this particular index for the next few days to understand if a new bull run has started.

The market sentiment remains in the "Greed" mode.

FedWatch Tool - FED rates probabilities


 
63.9% of investors are expecting the FED to increase the interest rates by 0.50% in the next meeting.

The remaining 36.1% are expecting a 0.75% rate increase.

The data show us that the number of investors expecting an increase of 0.75% is higher than a week ago, despite the news from the FED meeting notes released yesterday.

No other options are considered at this stage.

The next FED meeting is on 14 December 2022.

Market closure

Today, 24 November 2022, the U.S. stock market will be closed and tomorrow Friday the market is open only for a limited time.

The volatility will be none or very low during these days of holidays.

Wall Street rose after the release of the Fed November's meeting minutes
 

Related Articles

Wall Street rose after the release of the Fed November's meeting minutes

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Continue with Google
or
Sign up with Email