10:36 AM · 17 February 2023

Chart of the day - US100 (17.02.2023)

Moods on the global markets turned sour this week with US price growth data being a key driver. Higher-than-expected CPI data put some pressure on indices in the first half of the week and this pressure was further magnified by higher-than-expected PPI print yesterday. Such readings suggested that the Fed may have to stay on hawkish path for some more time before pausing hikes. Hawkish comments from Fed members added to those suggestions. Some institutions have also decided to boost their forecast and now, for example, Goldman Sachs sees 3 more 25 bp rate hikes from the Fed this year.

Nasdaq-100 (US100) is one of the most heavy hit indices as it tends to react the most to changing outlook for the monetary policy. The index dropped around 3% off the high reached on Wednesday night. Index is currently testing the 100-period exponential moving average at H4 interval. This average acted as a moving trendline recently and a break below would deteriorate technical picture and make it more bearish. 

Source: xStation5

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