The index will be heavily watched as we get closer to Jerome Powell’s first appearance as head of the US Federal Reserve. His dovishness or hawkishness on the US inflation outlook could have a strong effect on the markets today, one way or another, bringing in some choppiness into the price action. Yesterday, the S&P 500 gained 1.18% on the day and closed high at around 2780 mark. And this all is ahead of the testimony today.
We can see on the 4h chart, that S&P 500 is still sticking to the short-term upwards moving trendline, which began on the 9th of February and has been a strong support line for the index. The index might, either get a small retracement to the downside before the testimony and then make a move back up, or, it could keep stalling around the current price of 2776 and then make its move up. We do have the important psychological level of 2800 not far from the current price where it is now. A break above yesterday’s high of around 2786 could indicate that the price could test the 2800 level, or even move a bit higher. Above, we also have 2836 area as a potential good resistance level to watch out for.
On the downside, if the respected short-term uptrend that started on the 9th of February will be broken and we get a close below it on the day, then we could potentially see further declines in the S&P 500. A close below the 2754 area brings the 2682 mark back on the table.
We can see on the 4h chart, that S&P 500 is still sticking to the short-term upwards moving trendline, which began on the 9th of February and has been a strong support line for the index. The index might, either get a small retracement to the downside before the testimony and then make a move back up, or, it could keep stalling around the current price of 2776 and then make its move up. We do have the important psychological level of 2800 not far from the current price where it is now. A break above yesterday’s high of around 2786 could indicate that the price could test the 2800 level, or even move a bit higher. Above, we also have 2836 area as a potential good resistance level to watch out for.
On the downside, if the respected short-term uptrend that started on the 9th of February will be broken and we get a close below it on the day, then we could potentially see further declines in the S&P 500. A close below the 2754 area brings the 2682 mark back on the table.