The S&P 500 index has reached a new intraday high, surpassing its previous record set in July. However, the inability of bulls to maintain this level raises concerns about a potential bear trap.
This latest record marks a significant recovery from the market’s panic-driven decline in August, which was fueled by recession fears. The recent rise was supported by strong retail sales data, indicating a resilient US economy.
Market Awaits Fed Decision
As the Federal Reserve prepares to announce its interest rate decision today, market participants are anticipating the first rate cut in over four years. While analysts are predicting a smaller rate cut, there is a possibility of a more aggressive reduction or even a pause.
Technical Analysis
The S&P 500 index (US SPX 500 mini on FXOpen) is currently trading within an uptrend, supported by a blue channel. Its proximity to the median of this channel suggests a balance of supply and demand. However, given the potential for a rate-cutting cycle, a flat market seems unlikely.
Volatility Expected
The Fed’s decision and subsequent press conference are expected to lead to increased market volatility. If the market reacts negatively, the S&P 500 could find support at the 5,400 level.
FXOpen offers spreads from 0.0 pips and commissions from $1.50 per lot. Enjoy trading on MT4, MT5, TickTrader or TradingView trading platforms!
This article represents the opinion of the Companies operating under the FXOpen brand only. It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.
