Market Analysis: S&P 500 Futures Decline Ahead of Powell's Speech

FXOpen

At the same time, all the positives associated with a strong Nvidia report were offset by yesterday's decline. Probably, the closer Powell's speech is (his speech at the Jackson Hole symposium, which brought together representatives of central banks, is scheduled for today 17:05 GMT + 3), the more market participants fear his hawkish rhetoric. Note that ECB President Lagarde will speak at 22:00 GMT+3.

The FT assumes that the thesis "higher for longer" will prevail in the discussions on the size of the key rate.

Bloomberg writes that for the first time since the beginning of June, retail investors prefer short positions on US stocks.

Meanwhile, the chart of the S&P 500 index shows that the price has fallen to the lower border of the parallel channel.

Bullish arguments:
→ the lower border of the channel may support the stock index;
→ the market may find support at the level of 4,340, from which rebounds were formed in June and August.

Bearish arguments:
→ Buyers' inability to sustain progress on the August 23 bullish candlestick is evidence of demand volatility. What makes the market vulnerable to bear attacks.
→ the level 4,460 (which served as support in the first half of August) is now working as resistance again.

Get ready for a surge of volatility tonight that could extend beyond the stock markets.

Trade global indices with zero commission and tight spreads with the Innovative Broker of 2022*. Open your FXOpen account now or learn more about trading index CFDs with FXOpen.

* FXOpen International, best ECN broker of 2022, according to the IAFT

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.

Latest from Indices

Market Analysis: S&P 500 Falls amid News from the Fed FTSE 100 Analysis: London Out of the Doldrums! FTSE 100 Has a Day of Volatility Market Analysis: Nikkei 225 Reaches Psychological Level at 33,000 Britain's Economy: Balancing Act Amidst Gloomy Metrics and Resilient FTSE 100 Hang Seng Index Analysis: Price Recovers from Year's Low

Latest articles

Forex Analysis

USD/JPY Analysis: Rate Reaches Maximum of the Year

This morning, the Bank of Japan's decision on the interest rate, which has been kept at -0.1% since 2016, became known. The rate size remained unchanged. Although surprises could occur due to the fact that inflation is still above

Trader’s Tools

How to Measure Volumes with the Volume Profile Visible Range Indicator

In the intricate landscape of financial markets, grasping the significance of trading volume across various assets is paramount. This aspect of the market represents the ability to dissect and comprehend its dynamics— a skill often developed by experienced traders. Working

Trader’s Tools

Capitalising on Market Volatility

Market volatility, characterised by rapid price fluctuations, presents both opportunities and challenges for traders. Understanding its causes, measuring it effectively, and employing strategies to capitalise on it can lead to better trading results. This article explores the essentials of market

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 60% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.