S&P 500: market participants are waiting for the Fed's interest rate decision


At the time of writing this article, S&P 500 futures are traded near 3958.00 mark, continuing to correct after the strongest fall since the beginning of the year to a key support level 3660.00 (EMA200 on the weekly chart), which separates the multi-year bullish trend from the bearish one.

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Near the current mark and the support level 3950.00 (EMA50 on the daily chart) S&P 500 is already the 6th day in a row.

Market participants are waiting for the decision of the FRS on the interest rate (it will be published at 18:00 GMT) in order to determine the direction of further movement of the dollar and stock indices.

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Probably, the breakdown of the important support level 3950.00 in one direction or another will determine the direction of movement of the S&P 500 index for the next few weeks, at least until the next Fed meeting on September 20-21.

Confirmatory signals will also be breakouts of the boundaries of the current range between the levels of support at 3925.00 (EMA200 on the 1-hour chart) and resistance at 4000.00.

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The upper limit of the rising channel on the daily chart also passes through the mark of 4020.00.

In case of its breakdown, the S&P 500 will head to the key resistance level 4180.00 (EMA200 on the daily chart and EMA50 on the weekly chart), the breakdown of which will mark the end of the downward correction of the S&P 500, observed since the beginning of this year, from the local resistance level and the record high of 4810.00.

In an alternative scenario, a breakdown of the long-term support level 3660.00 (EMA200 on the weekly chart) can finally break the long-term global bullish trend of the S&P 500, and, perhaps, of the entire American stock market.

Support levels: 3955.00, 3925.00, 3900.00, 3860.00, 3823.00, 3660.00, 3600.00

Resistance levels: 4000.00, 4020.00, 4100.00, 4180.00, 4550.00, 4640.00, 4810.00

Trading recommendations

Sell Stop 3890.00. Stop Loss 4020.00. Targets 3860.00, 3823.00, 3660.00, 3600.00

Buy Stop 4020.00. Stop Loss 3890.00. Targets 4100.00, 4180.00, 4200.00, 4300.00, 4400.00, 4550.00, 4640.00, 4810.00