S&P 500 bulls are struggling to rebound after sliding below the $5000 psychological level amid the upcoming Federal Open Market Committee (FOMC) minutes and Nvidia earnings.
Both events have the potential to impact the US’ leading market index.
- Hawkish FOMC may suggest higher-for-longer interest rates which could translate into US500 moving lower
- Dovish FOMC may signal the potential for the interest rates to be lowered sooner. This could potentially translate into US500 moving higher
Higher-than-expected NVIDIA (US’s leading semiconductor maker) earnings could boost investor’s confidence in a broader technology sector, potentially leading to an upward momentum in the US500.
However, lower-than-expected results may dampen investor sentiment, which may potentially translate into US500 moving lower.
On the technical side …
- The current price is above all 3 key moving averages (21,50 & 100-period SMAs) may suggest a strong bullish momentum.
- The RSI is at ~55.87, which is within the neutral territory (<30 – oversold, >70 – overbought). This underscores the market’s current state of uncertainty as investors wait for the upcoming data.
- THE MACD is in the positive territory (~49.74), however, it is still below the signal line (~61.64) which could indicate a lack of strong directional bias.
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