S&P 500: All bets are on a Fed rate-hike pause

 


The S&P 500 was rejected at a weak trendline resistance ~ 4,322, but managed to close up 0.11% on Friday, just above a key resistance level at 4,279. The index was up for the fourth straight week, ahead of the Fed's decision on its interest-rate policy next Wednesday. The last time the S&P 500 was up for four weeks in a row was in August 2022.

According to the CME FedWatch Tool, the possibility of a no interest rate hike at the June FOMC meeting is 70.1%. Keep an eye on Fed Chair Powell's comments during the press conference on Wednesday as he may give some hints how long this pause will last. No one knows how the market will react to those comments. If the market likes what they hear, the S&P 500 will break a correction level at 4,337.

This note contained herein is not and should not be construed as a recommendation to buy or sell. Click here to view the latest update!

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