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FX.co ★ Overview of the US market (05/04/2021)

Overview of the US market (05/04/2021)

Overview of the US market (05/04/2021)

The recent movements in the US market suggest that a strong pullback will take place soon.

In fact, the market is already trading inside a range since April 16.

Dow Jones - from 33.940 points to 34.110 points (rose 0.5% or 170 points);

S&P 500 - from 4.185 points to 4.192 points (very little change);

Nasdaq - from 14.090 points to 13.895 points (declined by 0.7% or 95 points).

One of the main causes is the decision of the Federal Reserve to uphold a super-soft monetary policy. The $ 120 billion stimulus and strong GDP report helped as well.

According to the latest data, the US economy grew 6.2% in the first quarter, thereby raising inflation to 4.1%.

Forecasts:

Dow Jones will range around 33.500 - 34.400 points;

S&P 500 will reach 4.100 - 4.250 points;

Nasdaq will hit 13.600 - 14.100 points.

Although the most probable scenario is a strong pullback, the US market could continue moving up. Its scale, however, will only be small.

*The market analysis posted here is meant to increase your awareness, but not to give instructions to make a trade
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