From record highs a week ago to the markets selling-off and driving the U.S 10 year higher seem to be of little concern to the U.S Fed Chair Powell.

In Tuesday’s Congress hearing Powell told Congress that rising bond yields was a sign that the market is confident in the pandemic recovery. He also said the economy is a long way from its employment and inflation goals and that interest rates would stay low for the foreseeable future.

Global markets were also feeling the pressure even as U.S bond yields start to stabilize in early Wednesday trade. The Asian market moved lower due to falling tech stocks as soaring equity valuations come into focus after the recent bond market gains.

Here is what’s expected this week:

The Wall Street 30 

Target price on the WS30 was reached last week as described in our last Wall Street Analysis and shown in the chart below (green circle).

Chart Source: Wall Street 4H Timeframe - GT247 MT5 Trading Platform

The Wall Street 30 Technical Analysis

We have cleaned up the WS30 chart and we are looking at two possible scenarios. One would be if the price action moved higher from positive economic news events such as stimulus. The other is if the negative sentiment increases and the sell-off continues, we will look at a possible short target.

There is a defined support zone (blue box) which traders should take note of on the 4H chart which could send prices higher and could also offer great buying opportunities. If our support level at 31224 does not hold then we might possibly see the 30833 level in play.

• Our possible price target for the long traders is around 31731 and for the short sellers a possible short target could be 30833.

• The 50-day SMA (blue line) is above price on the 4H chart and is acting as possible resistance.
• The Relative Strength Index (RSI) is below the 50 mark and pointing lower.

Chart Source: Wall Street 4H Timeframe  - GT247 MT5 Trading Platform

Take note: The outlook and levels might change as this outlook is released during the current days (Wednesday the 24^th of February 2021) U.S Market open.

Sources – MetaTrader5, Reuters

Barry Dumas | Market Analyst at GT247.com

Barry has 12 years experience in the financial markets. He enjoys educating clients on trading / investing and providing punchy technical analysis on securities. He currently holds a Wealth Management qualification and is studying towards becoming a Chartered Market Technician® (CMT) designation holder.

Disclaimer:

Any opinions, news, research, reports, analyses, prices, or other information contained within this research is provided by Barry Dumas, Market Analyst at GT247 (Pty) Ltd t/a GT247.com (“GT247.com”) as general market commentary, and does not constitute investment advice for the purposes of the Financial Advisory and Intermediary Services Act, 2002. GT247.com does not warrant the correctness, accuracy, timeliness, reliability or completeness of any information which we receive from third party data providers. You must rely solely upon your own judgment in all aspects of your trading decisions and all trades are made at your own risk. GT247.com and any of its employees will not accept any liability for any direct or indirect loss or damage, including without limitation, any loss of profit, which may arise directly or indirectly from use of or reliance on the market commentary. The content contained within is subject to change at any time without notice.