S&P 500: New Medium-Term Low. Is Panic Over?
Sunshine Profits | Jun 14, 2022 10:27AM ET
The S&P 500 index accelerated its sell-off, as it broke below the 3,800 level yesterday. The market is frightened by tomorrow’s FOMC Statement release. Is it getting closer to a bottom?
The broad stock market index lost 3.88% Monday, following its last Thursday’s and Friday’s sell-off of more than 5%. Yesterday’s daily low was at 3,734.30. The S&P 500 index was 1084.3 points or 22.5% below its Jan. 4 record high of 4,818.62.
There’s still a lot of uncertainty and worries about inflation data, tightening Fed monetary policy and the Russia-Ukraine conflict. The market will be now waiting for tomorrow’s FOMC Rate Decision announcement.
The nearest important ):
Futures Contract – Below Previous Lows
Let’s take a look at the hourly chart of the S&P 500 futures contract. It was trading within a consolidation above the 4,080 level last week, and on Thursday it broke lower. Yesterday, the market broke below its previous lows. However, we may see a short-term upward correction here.
Conclusion
We may finally see a rebound on the S&P 500 after a three-day-long sell-off.
Investors will be waiting for the Wednesday’s FOMC’s interest rate decision release.
Here’s the breakdown:
- The S&P 500 index accelerated its sell-off on Monday, as it lost almost 4%; we may see a rebound this morning.
- In our opinion, no positions are currently justified from the risk/reward point of view.
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