S&P500 price – will Powell rock or shock ?
Uncertainty seems to fade away. Markets woke up and significant rally took place after Draghi’s very dovish comments and, in addition, positive developments of US-China trade dispute seems to have some light (probably fake !) and it all means one thing for stocks – up and up again. In the morning risk-on mood has spilled over to stock markets in Asia as they took the impulse further.
Today another huge thing is coming later on – and that is a Fed. Expect a quiet session for the most of the day as markets are in countdown mode to the FOMC meeting.
Will Powell rock or shock the markets – that is the question for today. I tend to think that he will rock. It is all about politics eventually, not economics.
Charts also look bullish. Stock continue the rally after impressive rebound that took place in the end of May and the pattern is very much indicates towards further upside. Now, technical view is in no way a crystal ball, yet we can indicate major supports now – 2894 and especially strong one at 2873. If these supports fail, then 2840-2843 is a very important pivot dividing bulls and bears territory.
I am bullish because the trend globally is all about easing and cutting the rates – and stock markets love it. This pattern is still intact so better to exploit it. Wait for today’s Powell remarks and enter longs. I would split exposure between current levels and 2894, 2873 and 2840 – in case the price makes goes south at first.
Have a nice day and trade responsibly!