FED Brainard dovish comments provide fuel for the bulls
Major Wall Street indices launched today's session mixed, however moods improved later in the session partially thanks to some dovish comments from FED Brainard. Fed vice chair believes that 'soon' it will be appropriate to move to a slower pace of increases especially that most recent CPI suggests core PCE might also show reduction while wage series started to step down but it will take time. By moving at a more deliberate pace, the Fed can assess more data and better adjust the path of rates to bring inflation down. Question of peak rate will be informed by the flow of data, even for the December meeting, information will come in. Although these statements do not contain anything groundbreaking, the markets reacted positively - stock indices rose and the dollar weakened.
US500 retests the 4000 pts level. Should a break higher occur, upward move may accelerate towards downward trend line, or even the resistance at 4195 pts, which is marked with the the upper limit of the 1:1 stricture. On the other hand, the nearest major support to watch is located around 3705 pts. Source: xStation5
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