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03.22.2023 – WEDNESDAY MARKET OUTLOOK

Market Outlook
 

So the FED did exactly what everyone expected, yet the market sold off hard (over 1.5%) at the end of the session. The whole day was flat until Powell spoke and revealed to be less hawkish. But then he mentioned that the fight to mute inflation is not over (wishful thinking as banks will force him to abandon this reckless policy) and the market sold off. In my opinion, it was just an overreaction to something everyone knew anyway and in that case, this may be just a dip that may recover tomorrow. But we need to wait and see whether this bearishness is going to continue or not.

 
Market Outlook
 

Despite the selloff, the market is still upward-sloping and all we did was just erasing yesterday’s gains. Normally, with only a 0.25% rate hike the markets would rally to the moon, so there is something fishy here.
Daily Ichimoku charts starting to improve and the price got above the red line yesterday, but today’s sell-off returned the chart back to a full-blown bearish look:

 
Market Outlook
 

However, the weekly chart improved a nod. We now have the green line above the price so the chart continues improving but given that it is actually moving sideways, I do not expect much. We are range bound and it seems it will stay like that for some time.

 
Market Outlook
 

The forecast for tomorrow is to recover today’s losses, but if the bearishness continues expect more selling to come. Let’s see if this plays out.

 
Market Outlook
 

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