On Wednesday, the Federal Reserve raised interest rates for the third time in 2018, leading to U.S. President Donald Trump commenting he’s “not happy about that”.
The central bank increases its policy rate in an attempt to prevent the economy from getting too hot or inflation spiraling off target levels. After Wednesday’s rate hike, Trump said at a press conference in New York, "I'd rather pay down debt or do other things, create more jobs, so I'm worried about the fact that they seem to like raising interest rates. We can do other things with the money." However, he added, "But they raised them, and they're raising them because we're doing so well." Trump also expressed that he’s happy for savers since they are likely to earn higher interest rates.
Trump’s comments seem to be a departure from tradition. Since the Fed is regarded as independent of political interference, presidents usually avoid commenting on its monetary policy decisions.
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 .
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 .
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.
The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows