Will rising interest rates cause equity markets to collapse?

Many continue to debate whether the Federal Reserve will raise rates by 75 or 100 basis points today. Attention will also be focused on the words of Jerome Powell, and the prospects that he will illustrate for the coming months.

The American markets closed the trading day of September 20 at the following prices:

Dow Jones

30,706.23

Nasdaq C.

11,425.05

S&P 500

3,855.94.

Will rising interest rates cause equity markets to collapse? It is not certain, because the last bearish leg of the American indices may have already priced up to a rise of 100 basis points.

What is expected for the stock exchanges until December?

In red, the forecast for 2022 of the American markets. The correlation with the world stock exchanges is around 80%. In blue, the path followed by prices from the beginning of the year until the close of 16 September.

Today it could become an input and catalyst for the next trend, and to define whether forecast and prices will take the same path again.

Will rising interest rates cause equity markets to collapse?

Dow Jones

Very short bullish trend until we see a daily close below 30.465. Lasting highs only with this weekly close above 32,505.

Nasdaq C.

Very short bullish trend until we see a daily close below 11.337. Lasting highs only with this weekly close above 12,271.

S&P 500

Very short bearish trend until we see a daily close above 3.827. Lasting highs only with this weekly close above 4,120.

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Over the past couple of days, prices have shown some indecision.

The predictions of our algorithms

They do not generate any expectations, either upward or downward for the future. In this context, investing money or buying and selling shares could present even greater risks than usual. Volatility is expected in the next few hours.

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The results of the forecasts in this article are based on statistical calculations explained in the ebooks published by ProiezionidiBorsa and processed on the basis of the available price history. (We also remind you to carefully read the warnings regarding this article and the author’s responsibilities, which can be consulted HERE”)

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