US equities wobble as investors brace for the Fed, S&P 500 back below $4,450


  • US equities trade tightly, fall back into recent ranges as Fed looms large.
  • The Federal Reserve is set to keep rates steady for this meeting.
  • FOMC to release their latest inflation expectations looking forward.

It’s all eyes on the Federal Reserve (Fed) for this week as the latest interest rate call on Wednesday from the Fed hangs over the markets. US equities were broadly back, albeit softly, and indexes spread towards the middle as investors brace for an updated playbook from the Federal Open Market Committee (FOMC).

The Standard & Poor’s 500 (S&P) slipped ten points to give up the $4,450.00 handle, settling the day down near $4,430.00 (-0.22%); The NASDAQ tech composite index declined 32 points to end the day near $13,678.00 (-0.23%); and the Dow Jones Industrial Average (DJIA) slid over 105 points to end Tuesday at $34,517.00 (-0.31%).

Stocks down, yields up ahead of Fed

As equity indexes backslid, treasury yields climbed again, with the 2-year note rising to 5.092 and the 10-year lifting to 1.365.

Wednesday will see the latest interest rate call from the Fed, where markets are broadly anticipating the US central bank to hold steady on their benchmark rates.

However, the FOMC will also be dropping its economic projections as well as its updated interest rate outlook. The data docket will be followed by the FOMC’s press conference 30 minutes later where investors will be keeping a close eye out for any changes in the Fed’s rhetoric stance.

S&P 500 technical outlook

Daily candlesticks have the major equity index firmly testing the bounds of a rising trendline, and an extended bearish slide could see the S&P kick into a further leg down to test the last swing low below $4,350.00.

Bullish momentum sees descending resistance from the upside as lower highs price in a ceiling north of the $4,500.00 handle.

The 100-day Simple Moving Average is on the rise, clearing $4,375.00 and could provide support for renewed bullish momentum in the index looking forward.

S&P 500 daily chart

S&P 500 technical levels

SP 500

Overview
Today last price 4441.66
Today Daily Change -10.73
Today Daily Change % -0.24
Today daily open 4452.39
 
Trends
Daily SMA20 4463.14
Daily SMA50 4484.59
Daily SMA100 4376.57
Daily SMA200 4190.52
 
Levels
Previous Daily High 4464.19
Previous Daily Low 4439.5
Previous Weekly High 4514.93
Previous Weekly Low 4445.7
Previous Monthly High 4590.64
Previous Monthly Low 4337.34
Daily Fibonacci 38.2% 4448.93
Daily Fibonacci 61.8% 4454.76
Daily Pivot Point S1 4439.86
Daily Pivot Point S2 4427.34
Daily Pivot Point S3 4415.17
Daily Pivot Point R1 4464.55
Daily Pivot Point R2 4476.72
Daily Pivot Point R3 4489.24

 

 

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