S&P 500 Index to struggle at the 4,330/4,400 hurdle, bouts of weakness are the trend – Charles Schwab
Aggressive Fed action and tightening financial conditions may keep downward pressure on stocks. Strategists at Charles Schwab expect the S&P 500 Index to remain below the 4,330/4,400 resistance zone.
Federal Reserve to squash inflation via the tightening of financial conditions
“Now the Fed concedes it may have to allow more economic and/or market harm to bring inflation down, with equity market volatility/weakness in a vacuum not likely to trigger a shift in policy.”
“Assessing technicians' consensus, as an example, resistance sits somewhere between 4,330 and 4,400 on the S&P 500, a range (for now) that represents a key hurdle.”
“Although Friday brought a ‘volume thrust’ (with higher volume associated with stronger stocks), historically persistent declines tend to end (or pause) with a string/series of positive breadth days. For now, rallies are more likely countertrend, while bouts of weakness are the trend.”
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FXStreet Insights Team
FXStreet
The FXStreet Insights Team is a group of journalists that handpicks selected market observations published by renowned experts. The content includes notes by commercial as well as additional insights by internal and external analysts.
