The S&P 500 rallied during the trading session on Tuesday, reaching to fresh, new highs yet again. We need to keep an eye on the Federal Reserve announcement today, because that will of course have a significant effect on where stock markets go next. It’s not the interest rate hikes that traders are going to be paying attention to, but the interest rate statement will certainly be front and center. If the Federal Reserve is a bit more hawkish than anticipated, that could put downward pressure on stock markets as the US dollar rallies. Alternately, if the interest rate statement is a bit more dovish than anticipated, that should only put in more buying pressure to the stock markets. The 2650 level should offer a bit of a floor in the meantime, and I expect stock markets be reasonably quiet between now and the announcement which of course happens during afternoon hours in the United States.
As a side note, we are a bit overbought on the hourly chart, so this might have an opportunity for buyers to get involved on short-term dips, but again, I believe that the next move is going to be significant enough that you are better off waiting for the daily close to tell you which direction to be involved in. One thing that has been reasonable over the last several sessions is that the 24-hour exponential moving average has been reliably supportive, so keep an eye on that moving average going forward.
S&P 500 Video 13.12.17
This article was originally posted on FX Empire