Why i expect Dow Jones to drop with Powell today
Todays the interest rate decision.
Powell already signaled, that we will not cut rates too early (they already did that in 1970 and the inflation spiked then).
With lasts weeks Consumer Price Index Inflation data (0.1% higher then expected), FED will most likely NOT CUT the interest rate today.
Stocks will react on that by selling off (because interest rate stays high). I estimate the same picture as we had last time. A strong sell off over 2-3 hours. Then market settles and the bullish investors come back with buy opportunitys.
I will look for buy trades today if any opportunitys occur.
Powell already signaled, that we will not cut rates too early (they already did that in 1970 and the inflation spiked then).
With lasts weeks Consumer Price Index Inflation data (0.1% higher then expected), FED will most likely NOT CUT the interest rate today.
Stocks will react on that by selling off (because interest rate stays high). I estimate the same picture as we had last time. A strong sell off over 2-3 hours. Then market settles and the bullish investors come back with buy opportunitys.
I will look for buy trades today if any opportunitys occur.