- The Fed has printed another $390bn, the S&P 500 index is rising for 3 consecutive sessions
- The Fed’s statement of support is spurring investment banks and funds to buy
- S&P 500 technical outlook
- Important economic data expected on Friday
- The US Commodity Futures Trading Commission (CFTC) has just sued Binance and CZ
Earlier I wrote that the Fed printed an additional $390 billion to maintain its financial stability and also opened a swap line to the central banks of Europe, Japan and Canada. Markets cheered this, but then the looming threat of a run on the banking crisis brought a sell-off again. Now we see that the negativity has been smoothly extinguished and the S&P 500 index is rising for the 3rd consecutive session.
The Fed is releasing additional liquidity into the financial system, which is making the dollar cheaper and supporting the stock market.
At the same time the banks have a clear message that the Fed will bail them out if something goes wrong. This adds to risk appetite and spurs investment banks and funds to buy.
Also in the news, it is hyped that, statistically, April is a good month in an election year.
Technically, the price is between the 200-day and the 50-day moving average. Also, an inverted Head & Shoulders pattern is almost formed. The nearest resistance level is between 4070 and 4085.
Additional liquidity from the Fed is giving more support to the markets. Positive news coming in from the regulators is also adding to the market optimism. In case a break-down of the PiP pattern base and a fixation above the 50 SMA might take the markets up to the highs of February near the 4150-4200 points. However, keep in mind that the entire rally can be wiped out very quickly in the event of potential bank failures.
The officials are claiming that everything is under control – but don’t forget that they were saying the same thing in 2007. Also keep in mind that the Fed has still not given up plans to beat inflation and important price change data will be released this Friday.
The US Commodity Futures Trading Commission (CFTC) has just sued Binance and CZ.
Bitcoin, BNB and Ethereum are each losing 4% at the moment.
There is a lot of pressure on crypto projects and their founders in the US. Earlier charges were also brought against Tron’s founder, Justin Sun.
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