Ashraf tells AlArabia's Lara Habib that the FOMC is expected to open the door for further quantitative easing at Wednesday's FOMC statement, but such program may not take effect until later in the summer. The reason the Fed will not start the new program right away is due to the recent rally in equities (decline in VIX), which reduced the need for any immediate measures.
Ashraf tells AlArabia's Lara Habib that the FOMC is expected to open the door for further quantitative easing at Wednesday's FOMC statement, but such program may not take effect until later in the summer. The reason the Fed will not start the new program right away is due to the recent rally in equities (decline in VIX), which reduced the need for any immediate measures.
Markets are likely to see a resumption of the risk-on trade, largely in equities as long as the Fed communicates a clear indication regarding further measures in the future.
The S&P500 index, the most widely followed index in the world (in terms of benchmarks) has now fallen exactly 10% from its record high. Major markets such as S&P500, EURUSD, XAUUSD, oil etc are widely scrutinized when their drawdowns reach high profile figures such as 10%,15% and 20%. At these points, algos and automated buy programs are alerted and even triggered. Similar action when these markets reach high profile moving averages such as 55, 100 and 200. In today's case, today's SPX 10% decline coincides with the 55-DMA. Note in the drawdown charts below, what happened when SPX drawdown reached the 10% level. The most likely scenario (according to multi-year cycle averages), indices will have a positive April before resuming fresh downside ahead.
Click To Enlarge
Latest Hot-Chart - Mar 30
Patterns on Fridays & Mondays
Since the start of the war on Iran, the pattern of falling Fridays in US equity indices has become obvious. Will the pattern ends this week.
View Hot-Chart..
Understanding US Dollar 2018 2019
I created this chart in December 2024, pointing to the importance of understanding some of the fundamental events shaping USD Index between 2018 and 2019. Why 2018 and 2019.
Read Article..