Major averages finished quietly lower yesterday and near the top of their respective trading ranges on mixed volume. This comes ahead of the Federal Reserve's policy announcement at 2 p.m. EDT today following the conclusion of their two-day meeting.
The Fed has become increasingly dovish with regard to any interest rate hikes this year as the global economy remains stagnant. That said, they have said they remain open to the possibility of rate hikes later this year depending on improving economic conditions.
The Bank of Japan left its policy rate unchanged at -0.1% while downgrading its economic outlook. Given that its economy has not improved despite negative interest rates, it calls into question what tools central banks have to stoke their respective economies.
The market's future direction may hinge upon the Fed policy announcement, so investors should remain alert to any change of trend. For now the Market Direction Model remains on a buy signal pending any evidence to the contrary.
This information is provided by MoKa Investors, LLC DBA Virtue of Selfish Investing (VoSI) is issued solely for informational purposes and does not constitute an offer to sell or a solicitation of an offer to buy securities. Information contained herein is based on sources which we believe to be reliable but is not guaranteed by us as being accurate and does not purport to be a complete statement or summary of available data. VoSI reports are intended to alert VoSI members to technical developments in certain securities that may or may not be actionable, only, and are not intended as recommendations. Past performance is not a guarantee, nor is it necessarily indicative, of future results. Opinions expressed herein are statements of our judgment as of the publication date and are subject to change without notice. Entities including but not limited to VoSI, its members, officers, directors, employees, customers, agents, and affiliates may have a position, long or short, in the securities referred to herein, and/or other related securities, and may increase or decrease such position or take a contra position. Additional information is available upon written request. This publication is for clients of Virtue of Selfish Investing. Reproduction without written permission is strictly prohibited and will be prosecuted to the full extent of the law. ©2022 MoKa Investors, LLC DBA Virtue of Selfish Investing. All rights reserved.