. S&P 500 Price News & Technical Analysis Forecast - 03 May 2023

S&P 500 PRICE FORECAST & NEWS TECHNICAL ANALYSIS – 03 MAY 2023

S&P 500 PRICE FORECAST & NEWS TECHNICAL ANALYSIS – 03 MAY 2023

03 May 2023

S&P 500 slightly increases as Wall Street waits for the Fed rate decision.

Wednesday’s stock market saw a small increase as traders anticipated the Federal Reserve’s newest policy move.

S&P 500 gained 0.1% 

On Wednesday, the payroll processing company ADP released data on private payrolls that revealed unexpectedly higher hiring at private enterprises in April than had been anticipated by economists. The increase implies that, despite the Fed’s efforts to slow down hiring and pay growth, the labour market is still strong.

At 2:00 PM ET, the Fed will make its most recent policy announcement. At 2:30 PM ET, Chair Jerome Powell will also attend a press conference.

Market participants are pricing in an 86% chance that the Fed will raise rates by 25 basis points, according to data from the CME Group’s Fed Watch tool. Wall Street will also be on the lookout for hints as to whether the central bank will keep raising rates or pause them.

The announcement will follow a challenging trading session. On Tuesday, the Dow, S&P 500, and Nasdaq all decreased by more than 1%. Following the failure of First Republic Bank and JPMorgan’s subsequent acquisition of it, ongoing worries about contagion in the local banking industry weighed on the markets.

Tuesday night saw a modest decline in U.S. stock futures as traders anticipated the Federal Reserve’s newest policy move.

S&P 500 TECHNICAL ANALYSIS DAILY CHART:

S&P 500 is currently trading in up channel.

S&P 500 is currently trading below 5&20 SMA.

RSI is in buying zone which suggests bullishness and Stochastic is suggesting down trend.

Immediate resistance is at 4151.47 & its immediate support level is 4128.52

HOW TO TRADE S&P 500 IN THIS WEEK

The S&P 500 is currently trading in an upward channel, and if it breaks through this resistance zone, it will rise to the next resistance level.

TRADE SUGGESTION- BUY AT 4151.47, TARGET AT 4179.89, SL AT 4128.52