Dow Jones Price Forecast: Big Support Holds Ahead of FOMC
Sep 15, 2020 (MENAFN via COMTEX) —
(MENAFN – DailyFX) Dow Jones, Nasdaq 100 Price Forecast:
US equities continue to show hues of recovery from the early-September slump. Tomorrow’s economic calendar is loaded – with heavy emphasis on the FOMC rate decision. The analysis in this article heavily utilizes price action and chart patterns . To learn more about price action, check out our DailyFX Education section, where it’s taught amongst a host of other candlestick patterns and formations. Stocks Hold Support, Fed on the Way
Tomorrow brings the next installment of the Federal Reserve’s tangle with the coronavirus and related effects. The big item out of the Fed in August was the commentary from Jerome Powell to kick off the Jackson Hole Economic Symposium , in which the head of the FOMC shared the bank’s strategy shift. While the Fed maintains a dual mandate, marked with monitoring both inflation and employment, the FOMC is now taking a more watchful eye towards employment while being a bit more passive with inflationary pressure, should it show. While the bank has long targeted 2% inflation, the bank will now target ‘average inflation,’ with a bit more subjectivity in rate policy should inflation near that 2% number.
Given the blistering trends seen through the summer, one might imagine that such a shift would prod the topside of stocks to further fresh highs. And while the initial announcement did give a quick bit of run in the immediate aftermath, the September open has ushered in a different backdrop and US equities are currently lower than they were when Powell made that proclamation.
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The high-flying Nasdaq 100 appeared to get