{"id":146863,"date":"2019-05-02T09:30:08","date_gmt":"2019-05-02T13:30:08","guid":{"rendered":"https:\/\/www.countingpips.com\/?p=146863"},"modified":"2019-05-02T07:11:49","modified_gmt":"2019-05-02T11:11:49","slug":"us-fed-leaves-rates-unchanged-the-shake-out-begins","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/forex\/2019\/05\/us-fed-leaves-rates-unchanged-the-shake-out-begins\/","title":{"rendered":"US Fed Leaves Rates Unchanged \u2013 The Shake-Out Begins"},"content":{"rendered":"
May 2, 2019<\/div>
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By TheTechnicalTraders.com<\/u><\/a><\/strong><\/p>\n

The US Federal Reserve announced today they are leaving rates unchanged based on their latest meeting.\u00a0 The markets should take this as a sign of relief.\u00a0 Yet, hear all-time highs and expecting the Fed may actually decrease rates a bit, the market reacted with quiet price rotation near these highs.<\/p>\n

The US Fed could have shaken up the markets even more, but we believe this move by the Fed will be interpreted as \u201cFed Uneasiness\u201d with regards to the overall US and global economy at the moment.\u00a0 A failure to prompt a rate increase could be seen as weakness by the Fed and uneasiness over the fragility of the US and Global economies.\u00a0 Once this shake-out settles, the markets will go back to doing what the markets always do \u2013 interpreting future fair values.<\/p>\n

The $INDU rotated much lower today, ending the day almost exactly at a key support channel level (the YELLOW line).\u00a0 Further price weakness could push the $INDU below $26,000 fairly easily if the current high price level is fragile and weak.\u00a0 Price rotation is one of the most basic aspects of all price activity.\u00a0 The price must rotate in order to establish new price highs or lows.\u00a0 As volatility decreased over the past 30+ days, it would not be unexpected to see price retest the $26,000 level, or lower, in an attempt to resume a price trend or re-establish price support before attempting another move higher.<\/p>\n

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The move in the NQ today was much broader than the move in the $INDU.\u00a0 The Technology heavy NASDAQ 100 rotated downward, below the historical price support channel, and is currently resting just above the previous all-time price high near $7724.\u00a0 Again, the Fed\u2019s inaction may be interpreted as an expectation of market weakness over the next few months.\u00a0 Thus, traders reacted to this move by interpreting this weakness in the Fed to raise rates by selling.<\/p>\n

Overall, leaving rates unchanged may be very healthy for the US and global economies.\u00a0 The US Dollar continues to strengthen and this shake-out may be just what is needed before the Summer season for the price to continue trending.<\/p>

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<\/a>\r\n\t Get Our Free Metatrader 4 Indicators<\/u><\/b><\/a> - Put Our Free MetaTrader 4 Custom Indicators on your charts when you join our Weekly Newsletter<\/p>

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We\u2019ve recently warned that the US major Indexes are nearing our Fibonacci upside price targets and that we believe the upside price move may continue for another 20+ days still.\u00a0 This current rotation may be very short-lived \u2013 possibly only 5~10 days of lower\/sideways price action before trends resume an upside price bias.\u00a0 Time will tell.<\/p>\n

Overall, our prediction that a shake-out was about to happen appears to be unfolding just days after we made the claim.\u00a0 Our longer-term analysis is still the same \u2013 continued upside price bias as earnings and fundamentals drive prices closer to our Fibonacci price targets before any bigger price reversal may set up sometime in July\/Aug 2019.<\/p>\n

UNIQUE OPPORTUNITY<\/strong><\/p>\n

First, we typically see stocks sell-off and as the old saying goes, \u201cSell in May and Go Away!\u201d<\/p>\n

So what does this mean? It means we should start to see money flow into the safe-haven assets like the Utility sector, bonds, and most importantly precious metals.<\/p>\n

Second, my birthday is this month, and I think its time I open the doors for a once a year opportunity for everyone to get a gift that could have some considerable value in the future.<\/p>\n

For May I am going to give away and ship out silver rounds to anyone who buys a 1-year, or 2-year subscription to my Wealth Trading Newsletter for the first 25\u00a0subscribers. You can upgrade to\u00a0this longer-term subscription or if you are new, join one of these two plans, and you will receive:<\/p>\n

\"\"<\/p>\n

1-Year Subscription Gets One 1oz Silver Round FREE<\/strong>
\n(Could be worth hundreds of dollars)<\/p>\n

2-Year Subscription Gets TWO 1oz Silver Rounds FREE<\/strong>
\n(Could be worth a lot\u00a0in the future)<\/p>\n

I only have 25\u00a0silver rounds I\u2019m giving away
\n\u200b\u200b\u200b\u200b\u200b\u200b\u200bso upgrade or join now before its too late!<\/p>\n

SUBSCRIBE TO MY TRADE ALERTS AND GET YOUR FREE SILVER ROUNDS!<\/strong><\/a><\/p>\n

Happy May Everyone!<\/p>\n

Chris Vermeulen – TheTechnicalTraders.com<\/u><\/a><\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"

By TheTechnicalTraders.com The US Federal Reserve announced today they are leaving rates unchanged based on their latest meeting.\u00a0 The markets should take this as a sign of relief.\u00a0 Yet, hear all-time highs and expecting the Fed may actually decrease rates a bit, the market reacted with quiet price rotation near these highs. The US Fed […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-146863","post","type-post","status-publish","format-standard","hentry","no-post-thumbnail"],"_links":{"self":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/146863","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/comments?post=146863"}],"version-history":[{"count":1,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/146863\/revisions"}],"predecessor-version":[{"id":146864,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/146863\/revisions\/146864"}],"wp:attachment":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/media?parent=146863"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/categories?post=146863"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/tags?post=146863"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}