Nasdaq and S&P500 have gone more since the beginning of the week. We are reviewing the release of Fed Chair Powell’s speech on Friday, the upcoming income report from Nvidia, the issue of Fed’s freedom and technical analysis of the daily charts of S&P 500 is to conclude.
Fed Chair Powell’s ‘Dovish’ speech
The Fed Chair Powell’s speech at the Jackson Hole seminar was on Friday, and through his comments, it appeared to demonstrate a dowish axis in Fed’s monetary policy approach. In particular, we are referring to the following statements that “yet, with policy in the restrictive field, the transfer of basic approaches and risks may be warrant that adjusts our policy stance”. Fed chair comments demonstrate the desire to reduce tight financial conditions that may be around the American economy. Thus Fed Chair’s comments may have assisted in American equity markets after his release. However, it should be said that the story with US PCE rates on this Friday may probably change. Especially compared to the expected inflation print may ‘bend’ the hand of a hotter fed and possibly increase pressure to increase the pressure on the fed, which can then weigh the US stock markets. On the other hand, whether inflation print showcase should reduce inflation pressure in the American economy, it can have adverse effects that can then aid in American equity markets. In our opinion for the story ‘Dovish’ to replace the fed, inflation print may have to be largely distracted by economists from current expectations.
NVIDIA earnings report is going to happen today
NVIDIA earnings for the quarter have been set to release the later market. Current expectations by analysts increase from $ 0.76 to $ 1 for the company’s EPS figure and their revenue from $ 44.06 billion to $ 45.81 billion. In turn, the company hopes to earn that it can assist in their share price and vice versa. However, we are slightly more interested in the company’s further guidance and recent developments on their H20 chips and how their sales in China can be affected, as it may have a more significant impact on their stock price.
Gave freedom at stake?
Fed “Lisa Cook has indicated through her personal counsel that she would immediately challenge the action in the court and seek a judicial decision, which would confirm her ability to continue her ability to continue to fulfill her responsibilities as a Senate-Flagish member of the Board of Governors of the Federal Reserve System,” He has been removed from the post provided by President Trump. In turn, a continuous fight between the US government and its alleged attacks on the freedom of the Federal Reserve can weigh the US equity markets in a short term. However, whether the opportunity for the Trump administration can arise an opportunity to appoint a more ‘pigeon’ in the Federal Reserve, it can assist in US stock markets instead because the power pendulum can swing in favor of cutting forward rate rather than maintaining interest rates.
technical analysis
US500 daily chart
Help: 6135 (S1), 5850 (S2), 5580 (S3).
resistance: 6467 (R1), 6715 (R2), 7000 (R3).
The US500 is currently testing our 6467 (R1) resistance line. We choose a rapid approach to the price of the index and is a moving trendline supporting our case, which included the RSI indicator on May 23 and below our chart, which currently records a figure near 60, which means a rapid market sentiment. To continue our rapid approach, we will need to stay above the trendline of the index moving upwards, besides our 6467 (R1) resistance to have a fictional 6715 (R2) resistance level with the next potential target for bulls with clear brakes above the resistance line. On the other hand, for a sideways bias, we will need the index to be limited between our 6135 (S1) support level and our 6467 (R1) resistance line. Finally, for a recession approach we will require a clear brake below our 6135 (S1) support level, with a 5850 (S2) support line with the next possible target for the bear.
