Major Wall Street indices extend yesterday's sell-off
US indexes fell on Tuesday, building on losses from the previous session as recent upbeat data from the US economy brought some uncertainty regarding the Fed funds terminal level. Nevertheless markets continued to price in an 80% chance that FED will hike rates by 50 bp next week, therefore, it should be taken into account that the sentiment may reverse at any moment. From technical point of view, US500 broke below psychological support at 4,000 pts and is currently testing the lower limit of the ascending channel. Should break lower occur, downward move may deepen towards 3925 pts or 3886 pts area which is marked with the lower limit of the 1:1 structure and 38.2% Fibonacci retracement of the last upward wave started on October 13.Â
US500, H4 interval. Source: xStation5
