US30 Backtracks after Fed Chair Powell Firmed Up his Rhetoric
US30 Analysis
Entertainment giant and Dow component Disney, posted encouraging results for the three months ended September 30 this week. Its streaming services returned to subscriber growth after three quarters od losses, the financials of the DTC business continued to improve and the firm announced an additional $2 billion in cost savings. Furthermore, CEO Bob Iger offered an upbeat messaging for an exit from the recent rocky path, which has also weighed heavily on its stock. Markets liked what they heard and sent DIS.us nearly 7% higher on Thursday after the report and to the best day of the year.
Disney's surge was not able to lift US30, which slumped yesterday, as Fed Chair Powell firmed up his rhetoric. He is "not confident" that a sufficiently restrictive stance has been attained, in order to restore price stability [1]. Mr Powell appeared a bit more aggressive than last week's press conference, probably trying to manage expectations after the dovish tilt, but was still more dovish compared to last month's unambiguous "no" around the same matter. [2]
The pullback creates risk for a test of the 38.2% Fibonacci of the recent relief-rally (33,512) and a breach would cast doubt over its ascending prospects. However, the immediate downside can provide support and maintain the bullish bias. This would allow US30 to exit the daily Ichimoku cloud and look towards 35,047-35,110, although the fresh catalyst would be required for that. Markets now turn to Tuesday's CPI inflation update, which can determine the trajectory of the index.
Nikos Tzabouras
Senior Financial Editorial Writer
Nikos Tzabouras is a graduate of the Department of International & European Economic Studies at the Athens University of Economics and Business. He has a long time presence at FXCM, as he joined the company in 2011. He has served from multiple positions, but specializes in financial market analysis and commentary.
With his educational background in international relations, he emphasizes not only on Technical Analysis but also in Fundamental Analysis and Geopolitics – which have been having increasing impact on financial markets. He has longtime experience in market analysis and as a host of educational trading courses via online and in-person sessions and conferences.
References
| Retrieved 10 Nov 2023 https://www.federalreserve.gov/newsevents/speech/powell20231109a.htm | |
| Retrieved 12 May 2024 https://www.youtube.com/watch |
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