Stock markets reacted negatively to Fed Chair Janet Yellen's remark about rate hikes in the coming months. For the week S&P 500 index closed at 21693, down 0.681%, Dow Jones Industrial Average lost 0.85% and the technology laden NASDAQ composite index decreased 0.37%.
Two weeks ago, we said that S&P 500 index was in an extreme overbought condition and might start seeing some consolidation, and here we are as the index has since fallen from the high of 2193 to the low of 2160 and trying to stay above the short term support of 2160. As the momentum is still in the high gear, we expected the rally will continue after this consolidate phase.
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| Weekly chart of S&P 500 index |
Two weeks ago, we said that S&P 500 index was in an extreme overbought condition and might start seeing some consolidation, and here we are as the index has since fallen from the high of 2193 to the low of 2160 and trying to stay above the short term support of 2160. As the momentum is still in the high gear, we expected the rally will continue after this consolidate phase.
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