S&P 500 Technical Analysis

<p>Fed Members Warn Rate Hikes: S&amp;P 500 Technical Analysis and Outlook</p><p>Last week
we heard from many Fed members as the blackout period ended after the FOMC
meeting. The general sentiment is the same: wait for the data to decide how
much more they should tighten. In fact, although the majority expects two more
rate hikes this year, they keep repeating that they are conditional to the
data. </p><p>The data we saw last week would make them lean more towards a hike as the
<a href="https://www.forexlive.com/news/us-may-housing-starts-1631m-vs-1400m-expected-20230620/">housing market data</a>
surprised to the upside, the <a href="https://www.forexlive.com/news/initial-jobless-claims-264k-versus-260k-estimate-20230622/">US Jobless Claims</a> were
still solid, and the <a href="https://www.forexlive.com/news/us-june-flash-sp-global-services-pmi-541-vs-540-expected-20230623/">US Services PMI</a> beat
expectations. Everything will of course depend on the next NFP and CPI reports,
but if keep seeing good data, the Fed should raise rates in July as the market
currently expects. </p><p>S&amp;P 500 Technical
Analysis – Daily Timeframe</p><p>On the daily chart, we can see that after reaching
the 4494 high, the S&amp;P 500 started a slow and steady retracement. The 4324 support looks to
be the best spot where the buyers should pile in as we can also find the red 21
<a href="https://www.forexlive.com/Education/technical-analysis-understanding-moving-averages-20220425/">moving average</a> there.
On a break lower, the buyers may wait for the price to come into the <a href="https://www.forexlive.com/Education/technical-analysis-trendlines-20220406/">trendline</a>, while
the sellers should enter the market at every breakout.</p><p>S&amp;P 500 Technical
Analysis – 4-hour Timeframe</p><p>On the 4-hour chart, we can see that we can also
find the 38.2% <a href="https://www.forexlive.com/Education/technical-analysis-using-fibonacci-retracements-20220421/">Fibonacci retracement</a> level
near the 4324 support for further confluence. The
moving averages are crossed to the downside defining the current downtrend. The
sellers are likely to lean on the moving averages and keep targeting the break
lower. A moving average crossover to the upside should signal a change in
trend and the buyers may start to pile in expecting new highs. </p><p>S&amp;P 500 Technical
Analysis – 1-hour Timeframe</p><p>On the 1-hour chart, we can see that at
the moment the price is finding some support at a previous swing low level at
4383. A break to the downside should see more sellers piling in and targeting the
4324 support. In case the price bounces strongly here, the buyers may want to
wait for the price to first make a new higher high breaking above the 4427
level before jumping on board. </p><p><a href="https://www.forexlive.com/EconomicCalendar">This week</a> is
even emptier than the last one on the data front with just the US Jobless
Claims and the US PCE scheduled for the end of the week. Nonetheless, we will hear
again from many Fed members, but given that we haven’t got any important
economic indicator yet, it’s unlikely to see them signalling the next move. </p><p>See also the video below</p>

This article was written by FL Contributors at www.forexlive.com.