S&P 500 Choppy Ahead of the FOMC Press Conference

S&P 500 Technical Analysis

The S&P 500 initially tried to rally during the course of the trading session in the futures market on Wednesday, and it looks as if the 4200 level above is going to continue to offer a bit of resistance. If we can break above the 4200 level, then it is likely that we go looking to the 4300 level. The 4300 level is a large, round, psychologically significant figure. That is an area that is a massive barrier and breaking above that would change the overall attitude of this market as it would continue to reaffirm the massive hammer that we had formed during the trading session on Monday.

If we were to break down below the bottom of the hammer from the Monday session, then it is likely that we go looking to get down to the 4000 handle. The 4000 level underneath is an area that a lot of people will pay attention to due to the headline noise, but at that point, I think we would probably start to accelerate to the downside. Regardless, I think a lot of this comes down to what the Federal Reserve says, and perhaps more importantly what the market perceives it as.

At this point, the market is likely to see a significant and impulsive move, because at that point in time we will have gotten through what is probably the biggest event for the market this month. Regardless, it is obvious that we have a lot of concerns out there, so unless Jerome Powell can somehow calm the market nerves, things could get ugly rather soon.

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