Exchange news, S&P500. During yesterday’s opening the future of index S&P500 has hit its monthly RANGE and closed at the top line of price range at the point of 1268.00. The next level of resistance is at the point of 1275.00.
The market is currently having a rising channel, which proves the formation of a rising trend.
Speaking about mid-term forecast, last week’s report of WTO is very interesting:
It can be observed that since November large traders have been cutting the volume of short positions. As these are most experienced market players, it can be predicted that the rising trend is highly likely to continue.
During yesterday’s meeting of FRS Ben Bernanke has stated that it is soon going to start publishing forecasts on interest rates, which can result in rising the rate of federal financing that is currently close to zero.
This decision is an important step in the urge of the head of FRS Ben Bernanke to make the decision-making process more clear and support economy, bringing the expectations of financial markets closer to the view of Central Bank.
FRS has been keeping the rate of federal financing close to zero since December 2008. Moreover, Central Bank has bought out $2.3 trn. of bonds in order to stimulate economic growth.
Following four last meeting of FRS, it claims to keep the extremely low interest rate at least till mid 2013.
