The S&P 500 (US500) recently reached a critical resistance level at 4631, raising questions about the market's next moves. Last week, the Federal Reserve implemented a widely anticipated 25 bps interest rate hike, and market participants closely monitored Fed Chair Powell's press conference for hints about future policy decisions. However, Powell offered no clear signals, emphasizing the Fed's reliance on data for future choices. Economic data following the FOMC meeting pointed to a soft landing scenario, with US Jobless Claims surpassing expectations, but the US PCE and Employment Cost Index falling short of forecasts.
In the upcoming week, several economic data releases will play a crucial role in shaping market sentiment. These include the ISM Manufacturing PMI, US Job Openings, US ADP data, US Jobless Claims, ISM Services PMI, and the highly anticipated US NFP report. The market's focus on the soft-landing narrative suggests that positive data may push the market higher, while disappointing data could trigger downward movements. Despite some short-term caution, the S&P 500's overall trend remains bullish. However in the short-term a pullback or consolidation phase is expected before any potential further highs. Ultimately, the ongoing rally may lead the index to new all-time highs, with a healthy consolidation period in the weeks and months ahead.
Examining the daily timeframe, the S&P 500 encountered resistance at 4631, leading to a pullback as sellers took the opportunity to secure profits. Potential support levels for a pullback could be at 4550 and 4500. The index's price is currently trading near the upper boundary of an ascending channel (indicated by the blue line) that has been respected since February 2023. The next crucial resistance level to watch for is around 4700-4730 points.
Daily summary: Oil slumps 8% supporting Wall Street, precious metals and EURUSD
US Open: Wall Street climbs higher driven by oil sell-off and technology stocks optimism 📈
Nasdaq 100 has risen 25% from its March 31 low 📈 What’s next?
Market Wrap: Axios reports drive European markets; Novo Nordisk the star of the day❓🚀
This content has been created by XTB S.A. This service is provided by XTB S.A., with its registered office in Warsaw, at Prosta 67, 00-838 Warsaw, Poland, entered in the register of entrepreneurs of the National Court Register (Krajowy Rejestr Sądowy) conducted by District Court for the Capital City of Warsaw, XII Commercial Division of the National Court Register under KRS number 0000217580, REGON number 015803782 and Tax Identification Number (NIP) 527-24-43-955, with the fully paid up share capital in the amount of PLN 5.869.181,75. XTB S.A. conducts brokerage activities on the basis of the license granted by Polish Securities and Exchange Commission on 8th November 2005 No. DDM-M-4021-57-1/2005 and is supervised by Polish Supervision Authority.
