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”.
SPY saw its Momentum Indicator move above the 0 level on May 25, 2023. This is an indication that the stock could be shifting in to a new upward move. Traders may want to consider buying the stock or buying call options. Tickeron's A.I.dvisor looked at 67 similar instances where the indicator turned positive. In of the 67 cases, the stock moved higher in the following days. The odds of a move higher are at .
The Moving Average Convergence Divergence (MACD) for SPY just 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 .
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where SPY advanced for three days, in of 360 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 444 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 Stochastic Oscillator demonstrated that the ticker has stayed in the overbought zone for 6 days. The longer the ticker stays in the overbought zone, the sooner a price pull-back is expected.
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 June 02, 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.
The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows
A.I.dvisor indicates that over the last year, SPY has been closely correlated with IVV. These tickers have moved in lockstep 100% of the time. This A.I.-generated data suggests there is a high statistical probability that if SPY jumps, then IVV could also see price increases.
|IVV - SPY|
|SPLG - SPY|
|VOO - SPY|
|SPTM - SPY|
|SCHX - SPY|