Last Week Recap

Last week as expected, the US federal reserve hiked rates for the third time this year, raising the fed funds rate by 0.25% to 2.25%. The US central bank said that it expected rates to be raised again for the fourth time this December, three times next year and one time in 2020. The US stock market fell for the week, the S&P 500 declined -0.5% while the DJIA was down -1.1%. Canada has agreed on a trade deal with the US and Mexico, keeping the NAFTA trilateral trade relation intact. The new deal is named the “United States-Mexico-Canada Agreement”.

DJIA Daily Chart. A spinning top followed by 3 black crows candlestick formation. Source: Lim&Tan, ChartNexus

Last week we pointed out the high volume spinning top on the DJIA daily chart and price had since retraced 285 points to close at 26458. Based on technicals, the charts are not looking good for …