After the US Federal Reserve press conference, the indices continued to decline (SPY $408.02, -0.71%).
Our robots are reducing risks by opening shorts, but they mostly maintain many long positions. In case of further decline, the robots will begin to cut losses on long positions and increase short positions, as the risk of correction intensifies. It is evident that the Fed has reached the peak of interest rates, but since it has constantly been wrong in its inflation forecasts, it wants to make sure that inflation will decrease before announcing the end of the rate hike cycle.The markets are no longer expecting further rate hikes from the Fed, but it is clear that economic reports will now be in the spotlight and reactions to them will be strong.
Below are the key statements from the US Federal Reserve's latest meeting of the Federal Open Market Committee held in May 2023:
The Fed expects moderate economic growth in the US in the near future, despite a recent decline in inflation expectations.
The regulator acknowledges that the tightening of monetary policy had a stronger impact on the banking system than expected, but emphasizes that it was necessary to address the growing debt burden and stabilize the economy.
The Fed chief asserts that raising the debt ceiling is necessary to ensure financial stability in the US and urges lawmakers to take action.
The Fed intends to continue to lower inflation and bring it to the target level of 2%.
The US banking system remains reliable and resilient, and the regulator will continue to monitor its condition.
The labor market remains strong despite a slowdown in employment growth.
The US economy continues to grow, but some sectors are under pressure due to the tightening of monetary policy.
The Fed will continue to monitor economic indicators and take necessary measures to support financial system stability.
A decision to raise interest rates was not made, but the Fed does not rule out such a possibility in the future.
The regulator plans to maintain its restrictive policy to lower inflation, but will also consider changes in the economic situation and global conditions.
SPY in downward trend: price dove below 50-day moving average on February 24, 2025
SPY moved below its 50-day moving average on February 24, 2025 date and that indicates a change from an upward trend to a downward trend. In of 39 similar past instances, the stock price decreased further within the following month. The odds of a continued downward trend are .
Technical Analysis (Indicators)
Bearish Trend Analysis
The Momentum Indicator moved below the 0 level on February 21, 2025. You may want to consider selling the stock, shorting the stock, or exploring put options on SPY as a result. In of 70 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are .
The Moving Average Convergence Divergence Histogram (MACD) for SPY turned negative on February 21, 2025. This could be a sign that the stock is set to turn lower in the coming weeks. Traders may want to sell the stock or buy put options. Tickeron's A.I.dvisor looked at 51 similar instances when the indicator turned negative. In of the 51 cases the stock turned lower in the days that followed. This puts the odds of success at .
The 10-day moving average for SPY crossed bearishly below the 50-day moving average on March 04, 2025. This indicates that the trend has shifted lower and could be considered a sell signal. In of 14 past instances when the 10-day crossed below the 50-day, the stock continued to move higher over the following month. The odds of a continued downward trend are .
Following a 3-day decline, the stock is projected to fall further. Considering past instances where SPY declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .
Bullish Trend Analysis
The RSI Indicator demonstrates that the ticker has stayed in the oversold zone for 2 days, which means it's wise to expect a price bounce in the near future.
The Stochastic Oscillator shows that the ticker has stayed in the oversold zone for 11 days. The price of this ticker is presumed to bounce back soon, since the longer the ticker stays in the oversold zone, the more promptly an upward trend is expected.
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where SPY advanced for three days, in of 364 cases, the price rose further within the following month. The odds of a continued upward trend are .
SPY may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options.
The Aroon Indicator entered an Uptrend today. In of 454 cases where SPY Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are .
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