Skip to Content
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.

Free Trading Guides
Subscribe
Please try again
Select

Live Webinar Events

0

Economic Calendar Events

0

Notify me about

Live Webinar Events
Economic Calendar Events

H

High

M

Medium

L

Low
More View More
S&P 500, Dow Jones Forecast: Risk-Taking Cut Back Ahead of FOMC

S&P 500, Dow Jones Forecast: Risk-Taking Cut Back Ahead of FOMC

What's on this page

S&P 500, Dow Jones Price Analysis & News

Relative calm in the equity space with US futures signalling a slight softness in light of a subdued lead from Europe. That said, much of the excitement is in the precious metals complex, which saw another volatile session. This had been particularly evident in silver as the precious metal saw a firm rejection of the $26 handle to the low $22s. Therefore, providing market participants a reminder that while markets are bullish on precious metals, the market does not simply just go in one direction.

Equities Forecast
Equities Forecast
Recommended by Justin McQueen
Download our fresh Q3 Equities Forecast
Get My Guide

S&P 500| Risk-Taking Lighten Up Ahead of FOMC

Yesterday saw downside in the S&P 500, once again finding support at 3210-3215. However, with the failure to reach the February gap (3260), risks are for a retest of support. As we noted in our weekly forecast, technical divergence highlights the bearish risks facing the S&P 500. On the downside, a break below 3210 opens up the door to 3177-85.

On the macro front, a resurgent in COVID cases across parts of Europe are seemingly beginning to unnerve investors; however, it would take a reimposition of lockdown measures to spark renewed selling. Elsewhere, risk-taking is maybe a touch lighter ahead of tomorrow’s FOMC, where all the focus will be on the accompanying statement, as well as the Q&A. US earnings will also garner attention with 37% of S&P 500 companies reporting this week.

S&P 500 Price Chart: Daily Time Frame

Source: Refinitiv

10 Most Popular Candlestick Patterns

Dow Jones | Potential for Interim Top

Much like the S&P 500, the Dow Jones is at risk of forming an interim top, as the index slides to the 21DMA at 26250. Failure to hold, places the initial focus onto 26000, which increases the likelihood of the beginning of a wider pullback. As such, we place close attention to the aforementioned Fed meeting, in which Chair Powell will have to walk a tight rope to provide enough dovish signals to meet dovish demands. That said, on the topside, key resistance is situated at 27000.

Dow Jones Price Chart: Daily Time Frame

Source: Refinitiv

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

DISCLOSURES