US futures are trading more or loss flat compared to Friday's cash close on Wall Street. The index may see some action in the coming days as the FOMC is set to announce its next monetary policy decision on Wednesday. Market consensus is for a 50 basis point rate hike. Moreover, the market expects the Fed to announce a decision on the launch of quantitative tightening. Such a move, partially aimed at removing excess liquidity from the market, may be a trigger for a deeper correction on the US stock market. US ISM manufacturing index for April will be released today at 3:00 pm BST. Market expects a slightly higher reading than in March. However, it is unlikely that the ISM release will trigger a big market reaction.
Taking a look at S&P 500 index (US500) at the D1 interval, we can see that the index is trading in an interesting technical spot. US500 dropped to the support zone ranging between 4,140 pts and 23.6% retracement of the post-pandemic downward move. Sellers were unable to break below so far. However, if they manage to do so, index may drop to as low as 3,700 pts - a textbook range of the downside breakout from recent trading range. On the other hand, should bulls regain control and launch a recovery move, a key resistance to watch is 4,575 pts zone - the upper limit of the range.
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Source: xStation5
