The Hawkish Fed exerted pressure on global equity indices and this pressure was magnified a day later by an even more hawkish ECB. S&P 500 (US500) has been testing 4,000 pts mark on Wednesday evening when Powell struck a hawkish tone during post-meeting press conference and less than two days later, the index is already trading below 3,900 pts. A look at US500 from a technical point of view shows that the index may be about to see a short-term trend reversal. US index is making a break below an important support zone today, ranging between 3,900 pts mark and the lower limit of a local market geometry. A decisive break below would hint at short-term trend reversing to bearish and would signal that recent 2-month long 18% rally was merely an upward correction in a downtrend. In such a scenario, the next support zone to watch can be found ranging around 3,700 pts mark.
Source: xStation5
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