Before the Fed's policy meeting announcement on Wednesday, the S&P 500 futures index is attempting to rebound cautiously from its 7-month low. Markets appear to have already priced in the Fed's hawkish tone by falling over 9% from ATH.

On the four-hour chart, following bottoming at 4220, the index made a higher bottom around 4284, indicating the downtrend is out of steam.

Currently, buyers are trying to gain traction and clear the resistance of 4416 around the previous top. They may establish a bullish run if they hold the ground above this level, which might inspire more buyers to enter the market.

If that happens, we can project the following obstacles on the Fibonacci tool, respectively 127% and 144% around the 4452 and 4471 levels. The 50-EMA lined up with a 161.8% Fibonacci level of 4499 can provide a potential target for buyers if they break out of this boundary.

Overcoming this crucial level would charge the rally to regain the 4549 mark.

S&P 500

Short-term momentum oscillators show the fading of selling forces. But so far, it seems the market is being more cautious than making a clear direction. The RSI pulled out of oversold territory into a neutral region. Momentum is reversing to the upside after dipping in the selling area. And the MACD bar is shrinking in the negative zone distancing above its signal line.

On the flip side, if 4416 holds resistance, the sellers may drag the price down to the 61.8% Fibbo support at the 4366 level. A further decline below this hurdle would lead to the previous bottom of 4284.

 

Trading forex and other financial instruments involve a high level of risk and may not be suitable for all investors or traders. Traders must carefully consider their trading objectives, financial situation, risk appetite, and level of experience before stepping into margin trading with Inveslo. There's a risk of losing more than the trader’s initial investment. The higher the leverage, the more the risk, which can go or against you. Traders are advised to be aware of the associated risks.

Feed news Join Telegram

Recommended Content


Recommended Content

Editors’ Picks

EUR/USD holds above 1.0700 after US inflation data

EUR/USD holds above 1.0700 after US inflation data

EUR/USD stays in the lower half of its daily range but continues to trade above 1.0700 in the early American session on Friday. The data from the US showed that the annual Core PCE Price Index declined to 4.9% in April as expected, making it difficult for the dollar to gather strength.

EUR/USD News

GBP/USD trades above 1.2600 as dollar struggles to find demand

GBP/USD trades above 1.2600 as dollar struggles to find demand

GBP/USD clings to daily gains above 1.2600 and remains on track to end the week in positive territory. The greenback struggles to attract investors after the data from the US showed that PCE inflation softened in April. 

GBP/USD News

Gold pulls away from daily highs, holds above $1,850

Gold pulls away from daily highs, holds above $1,850

Gold has lost its traction in the second half of the day on Friday and declined toward the $1,850 area. The benchmark 10-year US Treasury bond yield staged a modest rebound on the US PCE inflation data, not allowing XAU/USD to preserve its bullish momentum.

Gold News

Terra’s LUNA 2.0 support expands with Binance and Kraken welcoming the airdrop, here’s how you need to prepare

Terra’s LUNA 2.0 support expands with Binance and Kraken welcoming the airdrop, here’s how you need to prepare

Terra’s LUNA fork proposal has passed with 65.5% votes, Revival Plan 2 in action without algorithmic stablecoin UST. LUNA price could wipe out losses incurred by holders in the colossal crash of LUNC and UST. 

Read more

FXStreet Premium users exceed expectations

FXStreet Premium users exceed expectations

Tap into our 20 years Forex trading experience and get ahead of the markets. Maximize our actionable content, be part of our community, and chat with our experts. Join FXStreet Premium today!

BECOME PREMIUM

Majors

Cryptocurrencies

Signatures