SP 500 FUTURES Stays Afloat above Support 4176

  • SP500 FUTURES closed down.
  • The market awaits Powell’s reassurance.
  • Powell is expected to state the same comment:  No inflation.  Keep buying bonds.  0% interest rate.
  • FED to maintain its dovish stance.
  • More than likely, the indexes could move higher after the announcement.

The S&P 500 closed a tiny bit in the red today.  The FOMC meeting is in focus; however, Powell is not expected to surprise the market and will maintain Fed’s dovish stance.  On the hour chart, it painted the first red brick after the W formation; nonetheless, it looks more like a wait-and-see and undecisive move rather than a beginning of a downtrend.  Furthermore, the sentiment is the index does not want to go down, and the buyers are waiting for Powell’s reassurance so they will buy and push the price higher.  The price closed above the horizontal support trend line at 4176.

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