Stock markets and FOMC meeting minutes

The increasing probability of intensifying US and EU sanctions against Russia has increased risk aversion in the financial and stock markets. As a result, US stock indices are moving in a bearish trend. Fundamentally, the probability of a mid-term downturn in the stock market has increased. In addition, the FOMC meeting minutes will be released today, which could increase demand for the US dollar if it shows signs of contractionary policies and higher interest rate expectations. As a result, US 10-year bond yields are at their highest level since 2019 and will likely increase further.

In the Dow Jones index, technically, the pattern of the head and shoulders has been formed, and the probability of a downtrend is strengthened. However, the index has now reached the potential reversal zone of the 34-day and 200-day averages, and the response to this range is decisive.

In the S & P500 index, technically, the Ichimoku cloud range and mid-term averages in the four-hour timeframe are crossed. As a result, the probability of falling in the short and mid-term has increased.