07.09.202110:01 Forex Analysis & Reviews: Overview of the US market (09/07/2021)

S & P 500 chart.

Review of the US market for the week of September 1-7:

The US market has been trading horizontally over the past week. It held up at record highs, indicating that bullish investors are not yet strong enough to provoke further growth. But there was also no desire to sell stock portfolios, so the market did not decline.

In any case, sentiment was influenced by the August report on US employment, which showed that new jobs amounted to only 235,000, far below the expected 700,000. But on the bright side, the unemployment rate fell from 5.4% to 5.2%.

This data fueled the idea that the Federal Reserve is likely to begin tapering programs by November. Specifically, bond purchases may be reduced by $ 15 billion a month.

So, for the past week:

Dow practically remained unchanged at 35.380 points.

The S & P 500 gained 0.3% (15 pips) and ranged from 4.520 to 4.535 points.

NASDAQ climbed 0.5% (70 pips) and ranged from 15.290 - 15.360 points.

Forecast:

Dow will range from 35.000 to 35.700 points.

S & P 500 will range from 4.550 to 4.600 points.

NASDAQ will range from 15.100 to 15.500 points.

Conclusion: The US market has been trading around record highs all throughout 2021. And since the S&P 500 grew as much as 20%, there is a chance that a massive correction will take place. This should be seen by September, after the policy decision of the Federal Reserve.