News & Analysis at your fingertips.

We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site. See our updated Privacy Policy here.



Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events


Economic Calendar

Economic Calendar Events

Free Trading Guides
Please try again
More View more
Real Time News
  • Heads Up:🇺🇸 Overall Net Capital Flows (AUG) due at 20:00 GMT (15min) Previous: $126B
  • Heads Up:🇺🇸 Foreign Bond Investment (AUG) due at 20:00 GMT (15min)
  • The S&P 500 broke out of a bullish pattern on Thursday when it crossed the top-side trend-line running down off the highs. Get your market update from @PaulRobinsonFX here:
  • USD/TRY continues to breakout to fresh record highs, now trading above 9.31 $USDTRY
  • US natural gas futures continue to retreat, falling back below $5.00 MMBtu $NG $NG_F
  • Commodities Update: As of 18:00, these are your best and worst performers based on the London trading schedule: Gold: -0.05% Oil - US Crude: -0.09% Silver: -0.32% View the performance of all markets via
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Silver are long at 92.13%, while traders in GBP/JPY are at opposite extremes with 77.22%. See the summary chart below and full details and charts on DailyFX:
  • $AUDJPY back to that same 85 level that it spent four months trying to break through earlier this year
  • The Canadian dollar shows plenty of promise over the next week as oil price charts continue to grind higher and the US 10 year treasury yield attempts to stop the decline. Get your $USDCAD market update from @RichardSnowFX here:
  • Indices Update: As of 18:00, these are your best and worst performers based on the London trading schedule: US 500: 0.20% Germany 30: -0.06% FTSE 100: -0.07% France 40: -0.10% Wall Street: -0.16% View the performance of all markets via
S&P 500 Outlook: FOMC Punchbowl is Here to Stay, S&P 500 Drops to Support

S&P 500 Outlook: FOMC Punchbowl is Here to Stay, S&P 500 Drops to Support

Justin McQueen, Strategist

S&P 500, Fed Price Analysis & News

  • Fed’s Punchbowl is Here to Stay
  • Second Wave Concerns on the Rise
  • S&P 500 Looking to Test Support on the Pullback

Equity markets under pressure post the Federal Reserve monetary policy decision, however, with Powell and Co. making it clear that the Fed’s punchbowl is here to stay, this pullback in risk appetite looks to be an overdue retracement. Keep in mind that equities have seen a stellar month so far with the likes of the Dow Jones up over 6% this month, while the Nasdaq 100 broke to a fresh record high having hit the 10,000 milestone. That said, this pullback will look test the confidence of tactical dip buyers.

Fed Recap: While the Fed noted that the economic outlook remains highly uncertain, despite subtle signs of a recovery, most notably from the NFP report. The Fed’s dot plot highlighted that rates will be going nowhere over the forecast horizon to 2022 with Chair Powell echoing this stance by stating that the “Fed not even thinking about thinking about rate hikes”. In turn, this underscores the fact that with the Fed put in place investors have been able to overlook the dire consequences of the coronavirus crash for the time being.

Second Wave Concerns: As economies go back online from lockdown, it is worth keeping an eye on the coronavirus case count to assess whether a second wave is on the way. On the whole, while reopening economies have been a relatively smooth operation, there have been some red flags across US states with Texas recording its largest 1-day total, Florida saw the most cases in any 7 days, while California saw the highest hospitalisations in a month. The influx of liquidity has aided equity markets in its recovery, but a second wave can take that all away.

S&P 500: Support Failure Opens Door to Larger Fallout

As the S&P 500 continues pullback from the 3200 level, eyes are now for a test of support situated at 3110, which marks the 76.4% fib retracement of the Q1 sell-off. Failure to hold opens the door to a larger retracement towards 3000-20. Topside resistance, for now, resides at 3200, with the key barriers at 3300-30 where the early March gap resides. While the short-term pullback may find dip buyers looking for some tactical upside, the longer-term remains weak given the dire economic consequences for the global economy, which will have to be repriced in risk assets.

S&P 500 Price Chart: Daily Time Frame

S&P 500 Outlook: FOMC Punchbowl is Here to Stay, S&P 500 Drops to Support

Source: DailyFX

--- Written by Justin McQueen, Market Analyst

Follow Justin on Twitter @JMcQueenFX

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.