At the end of the day, Wednesday’s trading session will likely be the key moment that will determine the trajectory of the S&P 500 in the near term.
The S&P 500 The index showed a semblance of calm during Wednesday’s trading session as market participants held their breath in anticipation of a statement from the Federal Reserve. quite honestly, Federal Reserve decision is currently the most critical factor affecting market liquidity. As a result, market volatility is expected to shoot up later in the day. However, the key question after Wednesday will be how the Federal Reserve’s announcement and interest rate decision will affect the market – whether it will fend off further price escalation or serve as a catalyst to push the market to new highs. At this point, the bulls were able to completely ignore any signs of trouble. The resilience of buyers is something worth noting, to say the least.
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We are in the era of FOMO (Fear of Missing Out) trading, which means that practically anything can happen. Against this backdrop, traders should prepare for choppy waters and increased volatility throughout the day. If the market breaks to the upside, we could see a sprint towards the 4500 level. Conversely, any negative sentiment permeating the market could cause the S&P 500 to retreat towards the 4300 level – a previous point of significance that continues to attract the attention of market watchers.
- In light of the significant recent rally, the market is now trying to clarify. A smaller decline, while surprising to some, would not be entirely unexpected given the extent of the recent upward movement. Such a pullback could represent a significant buying opportunity for many investors who are likely to view it as such.
- After all, Wall Street does what it can to come up with bull stories. Their job is to sell stocks and right now there are about 8 stocks that are holding the index itself higher.
- Note that this is not an equally weighted index, which makes a huge difference. The overall market is not making the gains that this chart suggests.
At the end of the day, Wednesday’s trading session will likely be the key moment that will determine the trajectory of the S&P 500 in the near term. Traders must proceed with caution and closely monitor the Federal Reserve’s announcement and market reaction. Ultimately, whether the market continues its uptrend or experiences a healthy retreat, opportunities for savvy traders will always present themselves.
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