Technology sector under pressure as markets expect faster monetary policy changes from FED
Major Wall Street indices fell sharply on Friday, with NASDAQ being the worst performer, after hawkish comments from FED James Bullard and a better than expected ISM services PMI report restore concerns of inflationary pressure and rising interest rates. Bullard called for the Fed to begin tightening monetary policy, citing rising prices, strong economic growth and solid job gains. Earlier this week, Chair Jerome Powell had indicated that the Fed would discuss speeding up the taper of its bond-buying program at the central bank's next meeting in December. Investors also digested mixed payroll report. After today's data and comments from central bankers, the market expects that the accelerated tapering is almost certain. Less support for the market from the Fed is negatively affecting sentiment.
US100 fell sharply during today's session and broke below local support at 15750 pts. Currently the index is testing the lower limit of the 1:1 structure which coincides with 50 SMA (red line). Should break lower occur, downward move may accelerate towards the lower limit of the ascending channel. Source: xStation5
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