Market Analysis: 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.

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