HomeContributorsFundamental AnalysisE-mini S&P 500 Reacts Positively to Powell's Speech

E-mini S&P 500 Reacts Positively to Powell’s Speech

According to the head of the Fed’s Friday words:

→ Strengthening the economy may lead to rising inflation and require new increases;

→ the Fed will tread lightly in upcoming meetings;

→ the Fed is ready to continue raising rates if necessary.

Overall, there were no surprises and the surge in financial market volatility was relatively minor. The dollar index rose sharply, but then by the end of the trading week it gradually decreased — the fact that the bulls could not keep the progress made can be interpreted as a bearish sign due to the emotions of market participants during the speech of the head of the Fed.

And gold, on the contrary, decreased in price, but then won back the losses. The stock market works in a similar way.

The S&P 500 Index chart shows that:

→ the price of the index finds support in the 4,340-4,380 zone, where the June-July lows were formed;

→ price support is also noticeable from the lower border of the rising channel, which has been operating all summer;

→ the week started near Friday’s high – that is, after the weekend, market participants find positivity after the Friday speech of the head of the Fed.

However, the overall picture is thickening with broad bearish impulses:

→ August 15-18;

→ 24th August.

It is possible that supply and demand can find a balance so that the price of the S&P 500 index will consolidate within the range, which is limited by the 4,340-4,380 zone from below and the resistance level of 4,455 from above.

This article represents the opinion of the Companies operating under the FXOpen brand only. It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.

FXOpen is a global Forex and CFD Broker, founded in 2005 by a group of traders. With over 16 years of experience, the company has gained an excellent reputation a major brokerage that continues to expand rapidly. The broker offers a choice of platforms, including the popular MT4 and MT5 platforms, with a wide range of trading instruments with spreads from 0.0 pips: 600+ FX, index, share, commodity and cryptocurrency CFDs. FXOpen also provides its own PAMM technology, allowing clients to benefit from the strategies of experienced traders with a proven track record of successful trading and guarantees automatic distribution of profit and loss between the strategy provider and the strategy followers. CFDs are complex instruments and come with a high risk of losing your money. PAMM is only available in certain jurisdictions. Cryptocurrency CFDs are not available to Retail clients at FXOpen UK.

Featured Analysis

Learn Forex Trading