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's MACD Histogram just turned positive
The Moving Average Convergence Divergence (MACD) for SPY turned positive on May 26, 2023. Looking at past instances where SPY's MACD turned positive, the stock continued to rise in of 49 cases over the following month. The odds of a continued upward trend are .
Technical Analysis (Indicators)
Bullish Trend Analysis
The Momentum Indicator moved above the 0 level on May 25, 2023. You may want to consider a long position or call options on SPY as a result. In of 67 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are .
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where SPY advanced for three days, in of 361 cases, the price rose further within the following month. The odds of a continued upward trend are .
The Aroon Indicator entered an Uptrend today. In of 425 cases where SPY Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are .
Bearish Trend Analysis
The Stochastic Oscillator may be shifting from an upward trend to a downward trend. In of 64 cases where SPY's Stochastic Oscillator exited the overbought zone, the price fell further within 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 .
SPY broke above its upper Bollinger Band on May 18, 2023. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.
Fundamental Analysis (Ratings)
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Fundamental Analysis Ratings
The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows
