Major US indices were trading near all-time highs for almost the entire week, but in the end could not resist falling rather sharply. Most likely, large investors realized that the market has no upward potential, since no one is willing to buy stocks at very high prices. At the same time, there is a huge chance of a decline, as ahead is the policy meeting of the Federal Reserve. The latest data on US inflation was up 5.4%, which suggests that the central bank may decide to tighten monetary policy.
Last week:
Dow Jones closed 3% lower (1,040 pips) and ranged from 35.000 to 33.960 points.
S&P 500 was down 2.7% (120 pips) and valued 4.380 to 4.260 points.
Nasdaq fell 3.5% (500 pips) and fluctuated from 14.780 points to 14.280 points.
Forecasts for this week:
Dow Jones will range 33.500 - 34.500.
S&P 500 will range 4.200 - 4.300.
NASDAQ will range 14.000 - 14.500
The market will consolidate until the Fed's decisions next week.
