🟢 This week was turbulent for traders – everyone was expecting the Fed meeting.
The regulator raised the rate by 0.25% to 5.5%. Market participants were ready for it, but the rhetoric of J. Powell became much more important. He said that inflation is high and the decision on further tightening of monetary policy will be made based on incoming data. Powell said the labor market is still strong and the economy is resilient.
🟡 The cryptocurrency market felt selling pressure. The crypto market capitalization fell by 3.4% from $1.205 trillion to $1.164 trillion. But the market recovered a little bit from the fall and in the following days, it rose slightly to the $1.180 – $1.190 trillion zone, after the Fed meeting. VTS was unable to hold $30,000, falling to $29,000. Altcoins held stronger. The dominance of VTS continues to fall.
🟢 In contrast, the stock market showed strong gains. The S&P 500 is up 1%+ and the Nasdaq is up 1.5%+. Reporting season continues and companies are reporting strong results. But traders are locking in profits, so some stock prices are falling.
Investors seem to have forgotten all about the risks in the US economy and optimism is on the rise. The leading indicators point to the further development of the speculative bubble.
For long-term market participants, it is recommended not to open long positions at these levels. Short-term traders should also be careful with longs. Oscillators signal that the market has entered the oversold zone, and a bearish divergence is also visible.
🟢 By the way, August is approaching. And this is always the most volatile month of summer.
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