Indices News – S&P 500 Price & Technical Analysis – 03 November 2022
03 Nov 2022
Futures signal more losses on Fed’s rate hike view
U.S. stock index futures slipped on Thursday, signalling a fresh round of selloff spurred by worries that the Federal Reserve’s rate-hike cycle is far from over as the central bank hinted at smaller rate hikes.
The benchmark S&P 500 ended 2.5% lower on Wednesday, marking its biggest percentage decline in almost a month, after the Fed raised rates by 75 basis points as expected, although Chair Jerome Powell said it was “very premature” to discuss when it might pause the rate hikes.
Stocks had initially gained after the policy announcement left open the possibility of smaller increments, with traders still split between a rise of 50 bps and 75 bps in December.
However, rate futures markets implied the odds of peak Fed funds rate climbing to 5% or higher next year compared with a prior estimate of 4.50%-4.75% rise.
Data this week showed U.S. private payrolls increased more than expected in October and job openings jumped unexpectedly in September, pointing to resilience in the labor market.
S&P 500 Technical Analysis: Daily Chart
In the daily charts, S&P 500 was trading in up channel. S&P 500 is currently trading below all SMA.
RSI is in buying zone which indicates bullishness. MACD is currently above zero which indicates bullishness.
Its immediate support is 3660.13 & the resistance level is at 3817.95.
S&P 500 INDEX was trading in up channel before there is breakout downside.
How to Trade S&P 500 INDEX this Week:
S&P 500 INDEX will follow the downtrend until there is trend reversal. So, remain bearish on S&P 500 INDEX.