Caution ahead New Year Holiday!
After a few weeks of different news and data from the Omicron variant of coronavirus, finally, data show that it's not as dangerous as the strains that have dominated the first two years of the pandemic. Similar data before also was confirmed in other countries, however today and after the U.K. Health Security Agency also confirmed, market participants, getting more confident about that. However, still, the issue of fast-spreading can be a hidden risk of Omicron.
This confidence in consumers in the US was more visible with the US CB Consumer Confidence increase to 115.8 in December. Also, today we had US third-quarter GDP, which was better than 2.1% in the final figure. However, these numbers indicate that the economy eased sharply this quarter, with only 2.6% improvement, from 6.7% in the second quarter.
Data on mortgage applications and existing home sales were also published. According to the published data, US Existing Home Sales in November increased by 6.46M. Even if it was less than 6.52M estimates, however, it was better than October numbers and it shows a slow increase.
Given all these mentioned positive data, US PCE and Core PCE, both were optimistic. Data show that with the increasing economy, PCE at 5.3% did not change and Core PCE is down to 4.6% from 6.1% in the third quarter. It is optimistic since it can decrease inflation worries.
Anyway, even if we're are optimistic in the market, cautions ahead of the New year can change the market sentiment and bring more precaution in trades and investments, therefore be patient in your trade.
From the technical point of view also, in the Midterm chart of H4, we can see the price is back above the key level at 4,650, above both main 20&50 MA lines, with RSI at 61 and increasing OBV trend line, therefore next target will be the 4,700. Breathing above 4.7K this time can lead the index, to higher prices.
