S&P 500 Technical Analysis
The S&P 500 has gone back and forth during the trading session on Tuesday as we wait to see what Jerome Powell has to say. After all, the speech could reiterate the hawkish behavior of Jerome Powell, and the question of course will then be whether or not the market believes in. It’s been a bit to get traders to believe him and the Federal Reserve on whole, so whether or not that works now remains to be seen. Underneath, I see the 200-Day EMA indicator that could offer a lot of support, and of course the previous downtrend line from the channel. Furthermore, you have the 50-Day EMA coming into the picture, threatening to produce the “golden cross.”
That being said, it’s probably worth noting that the market has seen a lot of volatility as of late, so it is possible that we are going to see a lot of back and forth, but I think at the end of the day it’s more likely than not going to be a situation where we have to deal with a lot of volatility. I would anticipate that a major selloff probably attracts people back into the marketplace, despite the macroeconomic picture involved. I do think at this point in time it’s likely going to be a situation where we have the “buy on the dip” mentality show itself yet again, because for whatever reason, Wall Street thinks that the Federal Reserve will blank. Every time they do try to tell Wall Street that they are not going to, Wall Street freaks out a minute, and then completely ignores reality again.
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