This is the weekly chart of the S&P 500, which has managed to break a bullish trendline a few weeks ago. It is now heading up again to test its previous high, so it is likely prices will continue upwards till it hits the previous high, but whether prices managed to break a new high and continue after that will depend on further news of the inrerest rate hike. Should prices start heading down, the next support is at the lower bullish trendline. Overall, the bull trend still looks pretty strong.
This is the weekly chart of the Straits Times index, and although it is not obvious at first glance, the prices are actually trading very nicely within a large channel that is sloping gently upwards. Prices have recently bounced off the lower channel line, and are starting to edge up. Initially, I considered the possibility that prices will get stalled at the 3,000 level, but if prices successful clear that level, then there is a possibility that prices will try to test the 3,550 region again, barring any unexpected news.
During my last sharing at the Synapse Network Monthly Workshops, I wrote down these key dates to look out for.
29 October and 17 December are the next 2 FOMC meetings, where they will decide whether or not to hike the interest rates. Given the poor jobs data in the last NFP announcement on 2 October, and no strong signs of improvement from China, there is a very low chance of a hike on 29 October.
The next 2 NFP announcements are on 6 November and 4 December, and if the jobs data is strongly positive, then the chances for a rate hike on 17 December will be higher. Hence, we will need to keep an eye out for these figures, as they will have a significant impact on the stocks and forex market.
Best of luck in your trading! 😀