Finspiration Australia. Chart Analysis for Australian and International Stock Markets + BITCOIN.

 22/9/22.  Overnight in America, Fed announces interest rate rise, stocks fall.

Dow Jones -1.7%.  SP500 -1.71%.  Nasdaq -1.79%.  Small Caps -1.14%.  Banks -2.12%.

As expected, the Fed raised its key interest rate by 75 basis points, i.e, three-quarters of a percent.  The mood of the market changed as Fed Head Powell spoke about the meeting's deliberations.  Forty minutes after the IR announcement, SP500 was in positive territory, but a sharp slide in the last hour of trading saw the Index fall sharply.

SP500.

SP500 is now down to the lower end of the congestion zone seen at the left-hand side of the chart.

RSI is oversold at 33.74 and Stochastic remains in its oversold zone.

Watch for a trend reversal.  First sign would be a rise by Stochastic out of its oversold zone.

Commodities.

Commodities Index -0.6%.  Energy -0.46%.  Base Metals -1.4%.  Agriculture -0.57%.  Gold +0.46%.

The Australian market is closed today for the National Day of Mourning.

IG runs a synthetic market for Australia in lieu of the ASX - it is currently down -1.13%.

BITCOIN.

Bitcoin is currently down -2.6%, which is a new low.

That no doubt is a reaction to the Fed's interest rate rise.  Since Bitcoin provides no direct revenue it's not surprising that traders/investors are switching out of Bitcoin into other more enticing assets - e.g, cash which can earn interest.

That fall also puts a big question mark over my idea that this consolidation represented accumulation rather than distribution.

The crypto remains oversold so I'm not ruling out a counter-trend rally.  A return to a bull market?  That is looking less and less likely with more interest rates on the way.