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Stocks – Uncertainty Ahead of Today’s Fed, Possible Bottom?
June 15, 2022, 8:57 AMAvailable to premium subscribers only.
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S&P 500 – New Medium-Term Low: Is the Panic Over?
June 14, 2022, 8:53 AMThe S&P 500 index accelerated its sell-off, as it broke below the 3,800 level yesterday. The market is frightened by tomorrow’s FOMC Statement release – is it getting closer to a bottom?
The broad stock market index lost 3.88% on Monday, following its last week’s Thursday’s-Friday’s sell-off of more than 5%. Yesterday’s daily low was at 3,734.30. The S&P 500 index was 1084.3 points or 22.5% below its Jan. 4 record high of 4,818.62.
There’s still a lot of uncertainty and worries about inflation data, tightening Fed’s monetary policy and the Russia-Ukraine conflict. The market will be now waiting for tomorrow’s FOMC Rate Decision announcement. This morning the S&P 500 index is expected to open 0.6% higher following Producer Price Index release, and we may see an attempt at retracing some of the sell-off.
The nearest important resistance level is now at around 3,800-3,850, marked by the previous support level. The resistance level is also at 3,900. On the other hand, the support level is at 3,750. The S&P 500 index broke below its late May local low, as we can see on the daily chart (chart by courtesy of http://stockcharts.com):
Futures Contract – Below the Previous Lows
Let’s take a look at the hourly chart of the S&P 500 futures contract. It was trading within a consolidation above the 4,080 level last week, and on Thursday it broke lower. Yesterday the market broke below its previous lows. However, we may see a short-term upward correction here.
Conclusion
The S&P 500 index will likely open 0.6% higher this morning and we may finally see a rebound after a three-day-long sell-off.
Investors will be waiting for the Wednesday’s FOMC’s interest rate decision release.
Here’s the breakdown:
- The S&P 500 index accelerated its sell-off on Monday, as it lost almost 4%; we may see a rebound this morning.
- In our opinion, no positions are currently justified from the risk/reward point of view.
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Paul Rejczak,
Stock Trading Strategist
Sunshine Profits: Effective Investments through Diligence and Care -
Stocks Will Extend Their Sell-off – Are We Getting Close to a Temporary Bottom?
June 13, 2022, 8:53 AMAvailable to premium subscribers only.
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June 10, 2022, 9:08 AMAvailable to premium subscribers only.
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