S&P 500: Looking to the FOMC to Spring It Free
- The S&P 500 continues to be range-bound
- Upper and lower boundaries highlighted
- Looking for the FOMC today to break the market out from the range
Yesterday was just another day of sideways price action in the S&P 500. Today isn’t likely to be much more exciting than days past until after the FOMC rate decision and release of its policy statement at 18:00 GMT.
There are no expectations the Fed will make a change to rates today, so the focus will be on any language changes the Fed might make in its policy statement which provide further scope into the timeline of a possible rate hike. How the market reacts, time will tell; no predictions on this end will made about which way the Fed will lean with its language and which way the market will move as a result.
The S&P has been suspended in air for about two weeks now, and we have gone over reasons recently why the market looks more likely to decline than rise in the short-term. (You can check details here.) But until either the top or bottom-side of the recent range is broken, then there is little to do except for perhaps fade the upper and lower-bounds.
Resistance is in the 2174/78 vicinity while support comes in around 2160/55. Today would be as good as any day to see either or both sides of the range breached. A clean break of either support or resistance will be needed to pique our interest. Today could be that day.
See which way the crowd is leaning via the “Speculative Sentiment Index.”
---Written by Paul Robinson, Market Analyst
You can follow Paul on Twitter at @PaulRobinsonFX.
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.