FXstreet

Heading into a new week, bulls remain confident, buoyed by technical indications and market internals. A rate hike is likely and the commentary surrounding it could spoil the party.



The technical picture remains encouraging for bulls, as the major indices seem to be on track to leave behind the 3-month long correction. The Dow, the S&P 500 and the Nasdaq are all above their 50- and 200-day moving averages, and thanks to the recent rally, the short-term indices are likely to turn higher again soon. Small caps are spearheading the recovery after a brief period of weakness, as the Russell 2000 took out its January high well ahead of the broader indices. The Volatility Index (VIX) closed at 13, near the weekly open, despite a spike to the 15 level on Tuesday, as the “boring” sessions that followed pushed the measure lower.

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