Four Charts to Watch Pre-Fed: S&P 500, DXY, UST-Bund Spread, Oilby
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.