S&P 500 trades slightly above bearish trend territory as markets awaiting the FOMC protocol to be published soon.
Fed policy tightening that began months ago supports anxious trader sentiment.
S&P – stock index, the basket of which includes 500 selected US joint stock companies with the largest capitalization. The list belongs to Standard & Poor’s, it is also compiled.
Shares of all S&P 500 companies are traded on major American stock exchanges such as the New York Stock Exchange and NASDAQ. The weighted arithmetic average of the share prices of these companies is precisely the S&P 500 index. The S&P 500 competes in popularity with the Dow, and it’s deserve to be called the barometer of the American economy.
The S&P traded within a bearish trend last week, however, there is a risk close below this level. All attention is now on the news of macroeconomics, and Snapchat’s recent projections have only added to concerns about a potential recessions.
A 47.5 balance sheet reduction is planned, FOMC said in a meeting in May billion dollars per month from June 1, which in 3 months will give 95 billion dollars. The Fed’s rate hike protocols will significantly affect the plan balance sheet reduction. Also possible sales of Fed assets in MBS (securities, secured by mortgages) will have a key impact.
S&P 500 (ES) FUTURES 1-ChASOVOY CHART
S&P 500 continues to hover over bear market territory as it approaches FOMC protocols.
By TradingView
Tightening financial policy continues to affect key stock markets US indexes, including futures for the S&P 500 (ES), which are undergoing fluctuations in recent times.
The outlook for risky assets leaves much to be desired as the Fed moves toward neutral policies, and liquidity continues to decline. Almost all last week held the price of 3960, making a couple of minor jumps.
Given bearish positions and sentiment, the S&P 500 could bounce back from current level, in the near future. Area 3800 is a 0.618 correction Fibonacci for the period from March 2020 to January 2022, when there was a jump to record levels. Growth is possible in the short term, however will finally affect the development of events in the policy of the Fed.
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