Dow Jones, Nasdaq 100 and S&P 500 Bounce as Fed Opens Door to Danger Rally

Dow Jones, Nasdaq 100, S&P 500 Value Outlook:

Dow Jones, Nasdaq 100 and S&P 500 Bounce as Fed Opens Door to Danger Rally

The Dow Jones, Nasdaq 100 and S&P 500 surged following the March FOMC coverage assembly as Fed officers and Chairman Powell reiterated their coverage stance and charge hike expectations. The next press convention allowed Chairman Powell to basically double down on what was launched within the preliminary report which additional opened the floodgates to bullishness in equities. Other than US equities, different danger belongings like Bitcoin and the Australian Greenback surged as US Greenback weak spot prevailed.

Dow Jones Value Outlook

The current outperformer amongst US equities, the Dow Jones, could also be positioned to cost increased nonetheless because the bullish basic backdrop has been reaffirmed and the index friends above a key trendline that had helped maintain it contained. With uncertainty eliminated and technical limitations behind it, the Dow Jones enjoys an encouraging value outlook.

Dow Jones Value Chart: Day by day Time Body (January 2020 – March 2021)

Nasdaq 100 Value Outlook

The Nasdaq 100, which has lagged the Dow Jones and S&P 500 over the previous few weeks, can also get pleasure from a continuation increased after a quick break beneath the March trendline. Current value motion noticed the MACD line cross above the sign line on the each day chart at the same time as bulls struggled to stave off losses. Crucially, the crossover passed off beneath the zero degree whereas value traded above the 200-day exponential transferring common. Thus, the bins that may recommend positive aspects are forward have been checked and with occasion danger eliminated, the Nasdaq could now get pleasure from a bullish follow-through.

Nasdaq 100 Value Chart: Day by day Time Body (January 2020 – March 2021)

S&P 500 Value Outlook

The S&P 500 will doubtless observe the Dow Jones and Nasdaq 100 increased because it seems to interrupt 4,000 for the primary time in historical past. As with every market, buying and selling to new highs can usually lead to sparse resistance that may see positive aspects collect rapidly that means there is perhaps upside to discover if the psychologically-significant 4,000 mark is damaged.

S&P 500 Value Chart: 4 – Hour Time Body (November 2020 – March 2021)

It could appear the Fed’s projected coverage path and enhancing financial backdrop have opened the door to a continued rally in danger belongings that would see the US indices wade deeper into document territory. Within the meantime, observe @PeterHanksFX.

–Written by Peter Hanks, Strategist for DailyFX.com

Contact and observe Peter on Twitter @PeterHanksFX