Markets push forward into the final fed rate hike

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Markets push forward into the final fed rate hike

December 13, 2017
By Vlad Karpel

Major U.S. indices are breaching record territory today as investors look toward today’s anticipated Fed interest rate hike announcement.  8 out of 11 industry sectors are up, led by technology shares. The energy, telecom and financial sectors were excluded from the gains. On the economic data front, we saw the consumer price index gain 0.4% for the month of November, although this is mainly attributed to hiked gas prices. Barring food and energy costs, the core rate of inflation gained only 0.1%. This is a more accurate indicator, so the figures were somewhat disappointing to investors. As a result, the U.S. dollar and treasury bond yields were sent lower.

In premarket trading, stock futures had dipped following news of a Doug Jones (D-AL) victory in the special senate election in Alabama. It was initially thought that an additional Democrat filling a Senate seat may hamper the passing of the tax-reform bill. It is likely that GOP lawmakers will be able to pass the legislation within a week’s time- before Jones joins the Senate in Washington.

At the time of publication, the DJIA is up 0.55%, or 135.08 points, at 24,639. The S&P 500 is trading at 2,670- up 0.21% from the open. The Nasdaq-100 is up 0.36% at 6,887.

Using the ^GSPC symbol to analyze the S&P 500, our 10-day prediction window shows  consistent positive signals. Today’s positive vector figure of +0.10% moves to +0.56% within three trading sessions.  Today’s predicted support and resistance is 2,662.99 (± 3.74) and 2,669.76 (± 3.75), respectively. The predicted close today is 2,669.48. Prediction data is uploaded after market close at 6 p.m., CST. Today’s data is based on market signals from the previous trading session.  (INSERT GSPC CHARTS)

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