On Wednesday, the Federal Reserve hiked policy interest rate for the fourth time this year. The target fed funds rate – the interest rate at which banks can lend each other overnight – now stands at 2.25-2.5%, after the latest quarter-point increase.
The highly anticipated Federal Open Market Committee (FOMC) meet also brought to fore potential challenges and pressures facing the central bank. Fed Chairman Jerome Powell indicated "cross-currents emerging" which led most officials to temper their economic growth forecast for 2019. There would possibility be two rate hikes next year, which is fewer than previously expected – as hinted by Powell. As of the latest meeting, only six FOMC participants expect there could be as many as three.
Nevertheless, the Fed is still keen on letting fresh data guide their rate hike decisions going forward as well. The Fed does have a delicate task on hand : tightening credit to prevent overheating, but without stoking recessionary pressures.
On Tuesday, U.S. President Donald Trump tweeted, requesting the Fed to be wary of further rate hikes so as to not make markets any more “illiquid”.
Moving lower for three straight days is viewed as a bearish sign. Keep an eye on this stock for future declines. Considering data from situations where SPY declined for three days, in of 246 cases, the price declined further within the following month. The odds of a continued downward trend are .
The 10-day RSI Indicator for SPY moved out of overbought territory on March 22, 2024. This could be a bearish sign for the stock. Traders may want to consider selling the stock or buying put options. Tickeron's A.I.dvisor looked at 47 similar instances where the indicator moved out of overbought territory. In of the 47 cases, the stock moved lower in the following days. This puts the odds of a move lower at .
The Stochastic Oscillator demonstrated that the ticker has stayed in the overbought zone for 7 days. The longer the ticker stays in the overbought zone, the sooner a price pull-back is expected.
SPY broke above its upper Bollinger Band on March 20, 2024. 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.
The Momentum Indicator moved above the 0 level on March 18, 2024. You may want to consider a long position or call options on SPY as a result. In of 64 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are .
The Moving Average Convergence Divergence (MACD) for SPY just turned positive on March 27, 2024. Looking at past instances where SPY's MACD turned positive, the stock continued to rise in of 50 cases over the following month. 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 446 cases where SPY Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are .
The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows
Category LargeBlend