NASDAQ 100: Waiting The Fed Meeting, Investors Bet on Interest Rates Cuts

Let’s talk about what the Fed meeting and cuts on interest rates  could represent on the US Market.

Main theme on Nasdaq is the commercial tensions between USA and China that orientates institutional operators trades.

During last weeks Trump attacked India and Mexico as well. This operation made more difficult to understand what will be the result of this fights on the global markets.

The Eurozone is weak and unstable, while on US markets start highlighting signs of slowing, as we saw two weeks ago from data released from the US Bureau of Labor Statistics.

The consensus on the wage growing drop down and May created only 75.000* new non-farm positions (really lower rather what April’s Data showed).

Despite of this, NASDAQ is one of the best index with a +15%* performance YTD.

These negative signals are saw as a necessity for Fed to open to politics act to help the US economy. If we give a look to Fed Funds Futures what’s clear is that the chance that a cut on Interest rates won’t happen is only the 2%* before the end of the current year, while investors are betting on a double cut before 2020.

This unstable climax could force Powell to discuss it, so really important will be the Fed Meeting on 18-19/06/2019 where it could be discussed and we could get more details about this situation.


Technical Analysis, Waiting The Fed Meeting, Investors Bet on Interest Rates Cuts


NASDAQ 100 index is near to close the corrective phase opened between the end of April and the beginning of June.

After it has touched the minimum at 6.936 points**, the new trend registered a new maximum at +5%**.

We still need a new confirm from the momentum, either from trade volumes.

In this scenario, to confirm the trend, we need to break the target of 7.500 points in volatility and volumes, resistances at 7.691 and 7.851 points**. Instead at 7.000 points** is the fundamental support. If the minimum at 6.936 point breaks, we could see a bearish pression that could bring the prices to 6.872 and 6.642 points**.





*Source: Bloomberg Ltd.

**Updated at 15/06/19

June 17, 2019
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