“Tonight’s FOMC meeting could be a watershed moment for global markets. As we’ve been anticipating, the Fed’s decision could trigger a seismic shift in risk asset sentiment. Once this event is concluded, we might witness a dramatic market downturn, likely starting tomorrow or Friday. However, it’s important to note that this decline might not necessarily begin today.”
“U.S. markets are currently the most influential, as their performance often sets the tone for global markets, including India. If the U.S. markets experience a significant downturn, it could validate the sell signals that have been emerging from time cycle analysis since early September. To monitor this development, we’ll be focusing on U.S. markets starting tomorrow evening and Indian markets from Friday morning.”**
Following this event, we anticipate a surge in market volatility. India’s VIX is expected to spike to 16, while the CBOE VIX could reach 22. If these levels are breached, a market panic is imminent. For the Nifty, major support levels are at 25,000 and 24,750 on the spot. For the S&P 500, major support is at 5,475. Regardless of how distant these support levels may seem, once volatility increases, it could take only a day or two to break through them.
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