Market sentiment analysis:
- Trader confidence is still brittle, but not quite as poor as it was last week, as the markets wait for Wednesday’s Federal Reserve decision on US monetary policy and a deluge of US corporate earnings.
- Against this background, range trading is still widely called for, although there are trending markets to find.
Traders wait for Fed
Many traders are waiting for Wednesday’s news on US monetary policy from the Federal Open Market Committee and for more US corporate earnings to emerge before taking directional positions in the markets, leaving range-trading as the order of the day for many.
Nonetheless, Bitcoin continues to provide volatility and the US stock markets remain close to their record highs despite the odd setback.
S&P 500 Price Chart, Daily Timeframe (March 28 – July 27, 2021)
Chart by IG (You can click on it for a larger image)
In this webinar, I looked at the trends in the major currency, commodity and stock markets, at the forward-looking data on the economic calendar this week, at the IG Client Sentiment page on the DailyFX website, and at the IG Client Sentiment reports that accompany it.
--- Written by Martin Essex, Analyst and Editor
Feel free to contact me on Twitter @MartinSEssex
