The S&P 500 Seeks a Technical Bounce Ahead of the Open

Following the Federal Reserve's decision to hike interest rates by 25 basis points, the S&P 500 is now poised for a possible technical rebound. Pre-market trading suggests an increase of around 0.8%, which has some support from stable long-term Treasury yields and softer oil prices. The market’s reaction to this decision highlighted the power of the 100-day moving average, which acted as a support level at approximately 7,510 points. This level not only represents a technical mean but also marks the 23.6% Fibonacci retracement point, making it a strategic area for buyers. However, pressure on interest rates and their ability to rise above 5%, especially if sustained, will remain key factors in market performance. The risk of a continuous break below the 100-day moving average signals significant technical weakness. As investors continue to digest the implications of this Federal Reserve decision, the focus will be on sustaining this mean for a genuine recovery back to recent highs. The next resistance level at around 7,600 points could serve as a decisive indicator of the current bounce’s strength. Source original: ForexLive (InvestingLive)