The party in the stock markets seems to be over. It began shortly after the first Corona virus outbreak two years ago, as central banks and world governments plunged into a state of panic and launched the largest-ever stimulus program in history.

It has cost tens of trillions of dollars into the global economy, which has led to inflation and inflation. The stock market was the strongest in history, with large sums of money flowing into stock markets. NASDAQ rose 6,800 points to 16,800 points, which means it has gained more than the total history during this period.

20 SMA turned into resistance on the daily chart

In addition, the NASDAQ was gaining support for moving averages during towing, which increased its price. But earlier this year the price dropped and this index fell below all variable averages. Now, the 20 SMA (gray) has changed to resistance, so the trend seems to have changed and the decline is very serious, the small moving average acts as a resistance.


MAs have changed from support to opposition

The S&P500 rose from $ 2,200 to $ 4,800, while the 50 SMA (yellow) and 100 SMA (green) were on the bulls as a major bullish trend. Then came the reversal this year, with the FED reducing its monetary policy and finally stopping QE, announcing to the market that interest rates will begin to rise this week. The FED has issued inflation forecasts, which are higher than previous ones, indicating that the FED will continue to strengthen its policy, perhaps at a faster pace in terms of interest rates.

New York Federation Consumer Economics Survey

  • Annual inflation expectations + 6.0% ahead of 5.8%
  • Three-year inflation to 3.8% out of 3.5%
  • Home prices rose 6.0% to 5.7% a year ago.
  • Family expenses from one year ago + 6.4% + 5.5% – New series high
  • A year ago, food prices rose to + 9.2% from 5.9%.
  • Expected gas price increase from 7.3% to 8.8%
  • Unemployment in the next 12 months is 10.8% to 11.6% – consecutive low (since 2013)

That three-year inflation rate could be a major concern for the federation.


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