S&P500 jitters as Fed may raise interest rates further.
“S&P500 jeopardized by stubbornly high inflation in the United States.”
Investors has been reacting negatively towards equities following signs of stubborn inflation or rising prices in the US. Recently released inflation data points towards aggressive Federal Reserve in a bid to stabilizes price of goods. We expect Fed to increase interest rates further for next few meetings session, which will raise the opportunity cost of holding equities further.
Quick recap on S&P500
The index remains traded in a descending channel, with recent rebound short-lived due to immense bearish pressure from the top.
S&P500 Weekly Technical Analysis
From weekly perspective, the index is skewed towards the downside as MACD shows diminished upward momentum.
S&P500 Daily Technical Analysis
From daily perspective, the index has recently closed below 3900, which signals for a possible extension towards the downside.
ORDER: SELL LIMIT
STOP LOSS: 4040
Target 1: 3745
Target 2: 3665
ZFX Analyst’s Comment
The index which continues to trade within the descending channel emphasizes higher probability for an extension towards the downside. This is coupled with recently released inflation data which may prompt Federal Reserve to raise interest rates further.
Risk Warning: The above content is for reference only, and does not represent ZFX’s position. ZFX does not assume any form of loss caused by any trading operations carried out in accordance with this article. Please be firm in your thinking and do the corresponding risk control.
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