Whether Federal Reserve will raise interest rate in its next FOMC meeting on December 15 has put markets on edge and in a wait and see holding pattern. On Tuesday, stocks went up thinking Fed will not raise interest rate in December, but on Wednesday and Thursday stock markets turned sharply down thinking Fed will raise interest rate. Interestingly, the same thinking that Fed will hike interest rate in December pulled the markets back up on Friday to close the week flat. For the week S&P 500 index closed at 2091, up 0.08%, Dow Jones Industrial Average gained 0.28% while NASDAQ composite index increased 0.29%.
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| Weekly chart of S&P 500 index |
S&P 500 index closed flat for the second week as shown in the weekly chart waiting for the interest rate decision from Federal Reserve 10 days from now. The index appears to be holding up firmly above the support level with increasing momentum. The index went down during the week to test its 28 week moving average and successfully came back up to where it was. We expect the index to be flat before the rate hike decision from the FED.
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