🚀US100 surges nearly 2.5%❗

US indices rose sharply today, extending Friday gains  as risk appetite improved bolstered by the lack of Fed members' speeches, due to the blackout period, ahead of the FOMC meeting on January 31 – February 1. Now investors brace themselves for a busy week of earnings, including top tech giants Microsoft, Tesla, IBM, and Intel. 

Recent economic data have magnified concerns that the US economy is near a recession while boosting bets that the Fed will continue to raise rates however at a slower pace. Wall Street Journal Fed insider,  claims that the US central bank will announce a 25 basis point rate hike next week, which boosted upbeat sentiment. Later this week we get the US GDP and inflation data releases, which may increase volatility on the markets and influence FED decision. 

US100 jumped above major resistance at 11500 pts and 50 SMA (green line) on Friday and during today's session buyers breached long-term downward trendline. Currently the index is approaching 200 SMA (red line) and if buyers manage to uphold momentum resistance at 13000 pts may be at risk.  This level is marked with previous price reactions and 38.2% Fibonacci retracement of the upward wave started in March 2020. Source: xStation5