- U.S. stocks, oil may rise, U.S. dollar index stays bearish
- Spread between U.S. Treasuries, bunds may tighten further
U.S. stocks may bounce higher, the U.S. dollar index could maintain a bearish trend, the spread between U.S. Treasuries and German bunds may tighten further and oil could bounce, according to four charts showing near-term technical bias ahead of the U.S. Federal Reserve’s policy decision. Here are four charts showing the potential moves.
S&P 500: Short-term Trend Bias Turns Bullish
DXY Index: Short-term Trend Bearish
UST-Bund Spread: Further Tightening
Spread has been narrowing since late November, pausing near 200-daily moving average and Ichimoku cloud base.
WTI Generic Contract: Cautiously Bullish
NOTE: Sejul Gokal is a Technical Strategist who writes for Bloomberg. The observations he makes are his own and are not intended as investment advice.