The market seems to be improving. Powell had his remarks in Sweden and briefly spoke about the apolitical role of the FED avoiding any hints about the monetary policy. Investors seem to take it as the FED is trying to stay neutral advertising possible pauses in hikes. It seems, he didn’t want to say “we will hike and bring the pain” and then don’t do it and vice versa. After the initial sideways move the market spiked up:
The improvement is also visible in the Ichimoku chart as the market is trying to approach the resistance again. And the more times it tries to knock that resistance, the more likely it will break above it.
However, we are still expecting inflation data this week, and that may shake the market. My expectations below are based on the past behavior of the market, and then I use the trend forecasting technique. But that can be skewed by the past data, though. Today, the market went in the completely opposite direction. Tomorrow, we expect another up day. If that happens, that could mean a market’s paradigm shift and potential new bull market, mainly if the expected selling at the end of the day doesn’t happen. As of now, the market is bullish (until it isn’t).
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