Today’s Chart – US500 (12/16/2022)

A hawkish Fed put pressure on global stock indices, and that pressure was reinforced a day later by an even more hawkish ECB. The S&P 500 (US500) tested the 4,000 mark on Wednesday evening as Powell struck a hawkish tone during the post-meeting press conference, and less than two days later the index is already trading below 3,900 pts. Looking at the US500 from a technical perspective shows that the index may be on the verge of seeing a short-term trend reversal. The US index today breaks below an important support zone, between 3,900 pts and the lower limit of a local market geometry. A decisive break below would indicate that the short-term trend is turning lower and signal that the recent 18% 2-month rally was just an upward correction in a downtrend. In such a scenario, the next support area to be seen is around 3,700 pts.Source: xStation5

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