• 1 hour Musk Takes To Twitter To Troll The SEC
  • 1 day Lunar Mining May Commence As Early As 2025
  • 2 days Immigration Will Go Bust Without $1.2B Bailout
  • 2 days The Economics Of The Space Race
  • 3 days Why The World's Central Banks Aren't Yet Sold On Renewables
  • 4 days How Much More Cash Can Uber Burn?
  • 4 days Inside The Biggest Counterfeit Gold Scandal In Recent History
  • 4 days EU-U.S. Trade Relations Are Deteriorating
  • 5 days Over 184 Companies Have Bailed On Facebook
  • 5 days BP Sells Petrochemical Business For $5 Billion
  • 5 days U.S. Moves To Secure Domestic Rare Earth Supply
  • 6 days E-Commerce Explodes As Boomers Go Digital
  • 6 days Major U.S. Cities Are Turning To Renewables
  • 7 days Economic Reopening Backfires, COVID Surge Snaps Recovery
  • 7 days How Are Low Car Sales Impacting The Metals Market?
  • 8 days Are Gold Stocks Still Undervalued?
  • 8 days Singapore's $3 Billion Oil Trading Scandal
  • 9 days Luxury Clothing Isn’t A Priority As Americans Grapple With COVID-19
  • 9 days Natural Gas Demand Hits 25-Year Low
  • 10 days Gold Inches Towards $1,800 As Investors Pile Into ETFs
What's Behind The Global EV Sales Slowdown?

What's Behind The Global EV Sales Slowdown?

An economic slowdown in many…

Zombie Foreclosures On The Rise In The U.S.

Zombie Foreclosures On The Rise In The U.S.

During the quarter there were…

  1. Home
  2. Markets
  3. Other

Will The Fed Bail Out The Bulls This Week?

Fed Week

Fed Statement Wednesday

Heading into this week's FOMC meeting, the Fed has been unable to convince skeptical markets about the prospect of multiple rate hikes in 2016. From The Wall Street Journal:

Officials at the U.S. Federal Reserve have penciled in four rate increases this year, but investors have long doubted the U.S. central bank will follow through and market turbulence could give officials pause. They must weigh low inflation and worrying signs from tumbling stock markets against a job market that is fast improving and potentially taking up economic slack.


S&P 500 Trying To Hold Key Level

From a short-term perspective, the stock market bulls prefer to see the S&P 500 Index remain above last Thursday's high of 1,889. A daily close below that level could increase selling pressure.

S&P500 Daily Chart


Longer-Term Signals Hard To Ignore

Regardless whether or not stocks can mount a countertrend rally, the outlook for the remainder of 2016 will remain questionable. This week's video covers some ominous longer-term signals similar to those that occurred in November 2000 and January 2008.


Market Looking For A Change In Fed's Tone

If the Fed sticks to the "four rate hikes in 2016" script this week, the odds of further declines in equity prices will increase. The bulls are hoping for a more dovish tone given recent weakness in global markets. From The Wall Street Journal:

Fed officials are preparing for a policy meeting next week, at which they are widely expected to keep short-term rates on hold after lifting them in December. Traders in futures markets see a 70% probability the Fed will keep rates on hold again at a March policy meeting and less than a 50% chance it will move rates up again by midyear.

 

Back to homepage

Leave a comment

Leave a comment