Whether it’s disappointment or a hint that a further monetary boost to the economy is on its way, the speech on Friday from Federal Reserve Chairman Ben Bernanke is likely to trigger a strong swing in either direction in U.S. stock, currency and bond markets, which are sitting on critical technical levels, one analyst says.
Bernanke delivers a widely-anticipated speech on Friday at the Fed’s annual symposium in Jackson Hole, Wyoming, and for weeks now markets have been pondering whether or not the central bank chief will use the address to pave the way for another round of monetary stimulus via quantitative easing or asset purchases.
Daryl Guppy, CEO at Guppy Traders, says because U.S. equity markets are hovering around key chart levels, investors can expect a big move up or down in response to Bernanke’s speech.
“Technically, on the S&P, Dow and Nasdaq we are sitting on resistance levels and what that means is if the news is good we will have an exceptionally strong break out above the resistance levels,” Guppy told CNBC Asia’s Squawk Box on Thursday.
“Equally if there is a bad news we will get a powerful retracement, so we are looking at high volatility going into Bernanke,” he added.Page 1 of 3 | Next Page