Thur. Morning Finspiration Report. 21/9/23.

Yesterday, XJO Down -0.46%

In America, Interest Rate announcement nixed the U.S. market.

Chart for STW - ETF for XJO

 STW is down for three days in a row and likely to be down today.  It is close to an important support level and the lower end of the Value Zone.  Fourth day down is likely to be it. Today is options expiry day in Australia - so we can expect shenanigans.

SP500.

 Most of that long blue candle on today's chart was a result of the swoon coming after the Fed interest rate announcement.  Interest rates were put on hold - but expected to stay high for longer, perhaps one more rise.

Here's how the market reacted after the Fed announcement.

SP500 was in positive territory at 2.30 p.m. (Fed. announcement time) then fell more than 90 point.

A lot of that was due to bigger falls in the Nasdaq, down -1.53%.  Dow Jones Industrial was only down -0.22%.  That's a very wide divergence - which I think will narrow considerably in coming days.

Nasdaq with lots of Tech stocks is interest rate sensitive, that's the reason for the much bigger fall in the Nasdaq over the Industrials.

Commodities.

Commodities Index -0.82%.  Energy -1.61%.  Base Metals +0.7%.  Agriculture -0.27%. Gold -0.07%.

I suggested yesterday that Energy was looking at a fall - and that was confirmed today.

Gold also felt the impact of the Fed announcement.  Gold is negatively correlated to the U.S.$.  Higher interest rates mean a higher dollar and a lower Gold price.  The long upper tail on the Gold candle stick is indicative of the selling which occurred after the Fed. announcement.

After fifteen minutes of trading this morning, XJO is down -0.5%.