Technical analyst has a warning about markets

Technical analyst has a warning about the markets originally appeared on Thestreet.

Let’s talk about April 22. On that day, Standard & Poor’s 500 jumped by 2.5 %, which is great in itself.

But it also reflects the relief of investors that China and the United States may begin to solve their commercial differences and that president Trump said he would not try to shoot at the Federal Reserve Speaker Jerome Powell.

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Under the surface, something else happened. The S&P 500 broke over the main indicator line that the artists with artistic thinking may see, and the suggested shares may rise to the top. In fact, the S & P 500 increased by approximately 12 % to May 29.

However, what is happening now is somewhat difficult if one listens to the technical analyst Bob Lang, who is a contributor to Thestreet Pro. Its headquarters outside Boston, Lang is famous for its work in options and stock trading.

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In an interview with Podcast with Chris Versace, The Street Pro wallet manager, Lang said he wanted to see a confirmation of this purchase reference before it became very optimistic. (It is called an indicator of contrast moving convergence, or MACD for a short period.)

Lang said that the confirmation has not yet come.

There are Macro problems on the road:

• Trade and fears of trade. Lang is concerned about the lack of progress in commercial deals.
  

• Fears of inflation. The personal consumption expenditure index showed annually in April that decreased to 2.1 % on an annual basis. Except for food and energy, the change was 2.6 %.

• Fears about when the Federal Reserve will reduce interest rates. Lang believes that the Federal Reserve also focuses on lowering inflation to 2 % or less.

The Fedwatch of the CME group sees discounts, maybe three, before the end of the year but may not be before September. (President Trump and Federal Reserve Chairman Jerome Powell last week, the President said he believed the Federal Reserve should reduce prices now.)

The main federal funds in the Federal Reserve remains 4.25 % to 4.5 %, which is high enough to help maintain mortgage rates near 7 % and reduce activity in the housing market.

The Federal Open Market Committee, which determines the average, reduced three times in the fall of 2024 from the postpartum rise from 5.25 % to 5.5 %.

The next meeting of the committee is June 17-18, which is somewhat important. At the meeting, the committee will also make its personal expectations for the place where they see the economy.

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Lang said that the Federal Reserve policy is a warning to investors not to speculate a lot. Lang said that the federal reserve function is not in fact to save the stock market.