In this post, I will discuss the predictions created by an AI model I use weekly. These predictions are designed to help traders get a bias for the week. Note: I created these charts on the weekend (9/15/2024), so you will see the price action being offset to 9/14/2024. Since the market doesn’t trade on the weekend, you will have to mentally shift the dates to 9/16/2024.
The major news events for this week are summarized below. This week’s most significant event is the US FOMC meeting, where the US Fed is expected to announce its first interest rate reduction in over 4 years, signaling an end of the post-COVID inflationary era.
Below is the prediction for the SPXUSD (SP500) index. Contrary to the upcoming rate cut being bullish for the market, our prediction shows a decline in the stock prices, possibly due to a lower-than-anticipated rate reduction.
Furthermore, our prediction shows a rise in the USXUSD (or the dollar index) for the week following the announcement, which is also counterintuitive, since most people believe that the dollar index will fall after the Fed announcement.
The downtrend in SP500 is confirmed by the downtrend in NDQUSD (NASDAQ), given below:
Lastly, we can see that the DJIA (DJIUSD) index predicts a similar trend, however, it is projected to hold up better than the rest of the markets.
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