All trading involves risk. Ensure you understand those risks before trading.
OPEN ACCOUNT
☰
All trading involves risk. Ensure you understand those risks before trading.
OPEN ACCOUNT
✖

SP500 holds gains after PBOC liquidity injection

By :   Global author , Financial Analyst
September 23, 2021 1:14 AM
The FOMC will likely announce the start of tapering at its November meeting and that it will end some eight months later in mid-2022 - slightly earlier than consensus expectations. 

Like the June FOMC meeting, movement in the Feds "dots" was notable, indicating a more aggressive hiking cycle than expected. "Lift-off" is projected to commence in 2022 and will be followed by three hikes each in 2023 and 2024, higher than consensus expectations going into the event. 

Behind the FOMC's more aggressive rate hike projections, a lift in the committee's core inflation forecasts. Half the committee are now projecting inflation at 2.3% or higher in 2022 vs. 10% of the committee back in June, bringing into question the Feds narrative that the current rise in inflation is transitory.

Another significant PBOC liquidity injection to shore up the Evergrande debt crisis is supporting risk sentiment in the Asian session today. However, beyond this, U.S. equity traders are left to mull over a mix of higher than expected interest rates (albeit at still low levels), higher inflation, and stronger U.S. dollar against a backdrop of slowing growth. 

Nonetheless, the decline in the S&P500 from the early September 4549.50 high is viewed as a corrective pullback. While the overnight rally goes some way to suggest the correction is complete at this week's 4293.75 low, further evidence is required. 

Firstly in the shape of a move back above the breakdown level at 4425/35, followed by a daily close back within the trend channel 4465/85ish. Until then, a retest and break of the 4293.75 low cannot be ruled out, with risks towards the May 4238 high. 



Source Tradingview. The figures stated areas of September 23rd, 2021. Past performance is not a reliable indicator of future performance. This report does not contain and is not to be taken as containing any financial product advice or financial product recommendation

From time to time, StoneX Financial Pty Ltd (“we”, “our”) website may contain links to other sites and/or resources provided by third parties. These links and/or resources are provided for your information only and we have no control over the contents of those materials, and in no way endorse their content. Any analysis, opinion, commentary or research-based material on our website is for information and educational purposes only and is not, in any circumstances, intended to be an offer, recommendation or solicitation to buy or sell. You should always seek independent advice as to your suitability to speculate in any related markets and your ability to assume the associated risks, if you are at all unsure. No representation or warranty is made, express or implied, that the materials on our website are complete or accurate. We are not under any obligation to update any such material.

As such, we (and/or our associated companies) will not be responsible or liable for any loss or damage incurred by you or any third party arising out of, or in connection with, any use of the information on our website (other than with regards to any duty or liability that we are unable to limit or exclude by law or under the applicable regulatory system) and any such liability is hereby expressly disclaimed.

FOREX.com is a trading name of StoneX Financial Pty Ltd.

The material provided herein is general in nature and does not take into account your objectives, financial situation or needs.

While every care has been taken in preparing this material, we do not provide any representation or warranty (express or implied) with respect to its completeness or accuracy. This is not an invitation or an offer to invest nor is it a recommendation to buy or sell investments.

StoneX recommends you to seek independent financial and legal advice before making any financial investment decision. Trading CFDs and FX on margin carries a higher level of risk, and may not be suitable for all investors. The possibility exists that you could lose more than your initial investment and CFD investors do not own or have any rights to the underlying assets.

It is important you consider our Financial Services Guide and Product Disclosure Statement (PDS) available at www.forex.com/en-au/terms-and-policies/, before deciding to acquire or hold our products. As a part of our market risk management, we may take the opposite side of your trade. Our Target Market Determination (TMD) is also available at www.forex.com/en-au/terms-and-policies/.

StoneX Financial Pty Ltd, Suite 42.01, 264 George Street, Sydney, NSW 2000 (ACN 141 774 727, AFSL 345646) is the CFD issuer and our products are traded off exchange.

Delayed London Stock Exchange (LSE) Data

The London Stock Exchange (LSE) market data displayed or referenced on this website is provided on a delayed basis and is not in real time. The delay period may vary but is typically at least 15 minutes. This data is intended for information purposes only and should not be relied upon for trading, investment, or other financial decisions. We do not guarantee the completeness, reliability, or suitability of the data for any particular purpose. Users should consult real-time data sources and obtain professional advice before making any financial decisions.

© FOREX.COM 2026