S&P 500 (SPX) eyes 4,000 option expiry
U.S. stock index futures rose on Friday after a selloff in the previous session driven by hawkish comments from a Federal Reserve official that stoked fears of more aggressive rate interest hikes from the central bank.
St. Louis Fed President James Bullard said on Thursday the U.S. central bank needs to keep raising interest rates given that it is tightening so far “had only limited effects on observed inflation”.
The US Dollar too has yet to resume its uptrend, so equities are not alone in calling the Fed’s bluff. We watch for the money and bond markets usually for the first clues. Recent CTA positioning data shows massive shorts in EURUSD so perhaps that covering is holding the US Dollar back for now.
S&P 500 INDEX TECHNICAL ANALYSIS:
In the daily chart, S&P 500 is moving above all the MA.
RSI is in buying zone stochastic is suggesting no trend.
Its immediate resistance is at 4012.68 and its immediate support level is at 3947.03
HOW TO TRADE S&P INDEX IN THIS WEEK
S&P is moving in an up channel if it breaks it immediate resistance and sustains on it then the market will continue to trade up, and remain bullish on it.