- S&P 500's post-rate cut rally has paused.
- Futures are pointing to a weak opening.
- The 5,800-point mark could be the next target if bullish momentum resumes.
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This week’s spotlight fell on the Fed’s decision to cut interest rates, a move that sparked volatility. The Fed announced a 50 basis point reduction, aligning with market expectations that had recently shifted toward a larger cut.
Following the announcement, markets responded positively, and the S&P 500 soared to new all-time highs. The index now trades around 5,700, marking the end of the previous correction and making way for a potential new uptrend.
This positive momentum suggests that further gains are likely in the short term, with a key target around the psychological level of 5,800 points. If a minor correction occurs, the former peaks will serve as critical support for maintaining the uptrend.
Nasdaq 100 to Follow Suit With S&P 500?
Meanwhile, the Nasdaq 100 is rebounding from a more pronounced correction. It was confidently approaching historical highs near 21,000 points, but the momentum seems to have waned.
The recent surge enabled the Nasdaq 100 to surpass the psychological barrier of 20,000 momentarily during yesterday's trading session, signaling strong demand. But as of now, the futures are pointing towards a weak start for the index.
The current consolidation just below this level offers an ideal opportunity for buyers to enter.
DAX: Bulls in Control
With the DAX bulls currently in control, a consolidation above 19,000 points would set the stage for a realistic target of 20,000 points.
The immediate support level remains at the recent lows near 18,200 points, ensuring that buyers have a strong reference point as the market progresses.
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