FX.co ★ Overview of the US market on April 27

The US market is signaling an upcoming correction.

This means that Wall Street indices might gain this week, plausibly by as high as 2.5%.

To be more specific, the DJIA might increase by 0.7% (210 points) and close around 33.770 - 33.980 points. The Nasdaq Composite might jump by 2.5% (370 points) and range 13.770 - 14.140 points, while the S&P 500 might climb by 1.5% (60 points) and hit 4.130 - 4.190 points.

And since Nasdaq turned up after lagging behind in the past weeks, not to mention hit February highs again, tech giants such as Apple, Google, Netflix and Facebook have become the leaders of growth once again.

But keep in mind that the market cannot rally indefinitely and without strong pullbacks. All optimism (from the economic recovery, success of vaccinations, $ 2 trillion government stimulus and Fed programs) has already ended, and various problems lay ahead.

One example is the controversy on US taxes. Biden is asking to raise corporate income tax to 43% in order to fund the new $ 2 trillion plan.

Expectations for higher inflation are also looming above the market.

Forecasts:

DJIA - 33.500 - 34.400 points

NASDAQ - 13.700 - 14.300 points

S&P 500 - 4.100 - 4.250 points

There is a high chance that the market will undergo a strong correction. It may happen after the release of the Fed's policy decision on Wednesday, or after the report on Q1 GDP.