S&P 500 Renews positive drive after FOMC value detection. S&P 500 keeps growing following erratic FOMC price movement.
S&P 500 bullishness added by lack of investor’s worry – Fear and greed setup
The fear & greed measure, or VIX index, revealed that investors were more nervous before this week’s CPI notification. Than they had been before the FOMC policy meeting. In the aftermath of the Fed’s choice to leave rates constant over the time being. The absence of market anxiety just enhanced the uptrend for the S&P 500. Core CPI has been a problem for the US Fed, Although Tuesday’s report showed an encouraging decrease to 5.5%, which had blocked advancement on the first wave of decreasing inflation.
S&P 500 and other stocks rise when inflationary pressures decline
Stock prices rise as inflation declines because it means the Federal Reserve won’t have to raise interest rates as quickly to control inflation. The US Fed‘s report of economic prospects contained an array of figures scores. Nevertheless, that gave grounds for easing equities prices. For instance, the dollar’s value and US yields frequently go steeper. Whereas stocks generally decline in response to greater predicted core PCE – with a greater projection of the highest point in interest rates. That didn’t happen. Citing proof that the US economy continues to expand at a decent pace. Investors have chosen to focus on the higher revisions of GDP growth as a whole. And the downward adjustment of the jobless rate at year’s end.
CNN’s Fear and Greed Index expresses worry where markets pursue extraordinary gains. Offering an outsider’s perspective on market mood. This index has increased its level of excessive greed, indicating that it wouldn’t be a good idea to pursue this stock market at this point.
Note: Comparing current stock market values to their recent highs and lows is helpful. An upward trend is present. Once the S&P 500 is trading higher its rolling or recurring trend of the previous 125 trade days. However, if the index’s value falls under the median, it indicates that traders are becoming uneasy. The Fear and Greed Index looks over signs of sluggish pace for Fear and rising steam for greedy sentiment
Technical Perspective
The index was initially headed down as a result of yesterday’s FOMC statements, but bulls later disregarded the idea of a drop. Prices eventually finished nearly flat, but as of today, there seems to be a fresh positive trajectory.
Since the previous opening was over 4325, its 4510 degree of resistance serves as the following barrier of resistance. The RSI, which puts the indicator far across overvalued zone., It is one of the clearest signs that the market is boiling. Despite this, the signal line and the MACD line continue to split, suggesting that the trend has not been lost. The 68 percent Fib retrace from the 2022 sell off looks to be point 4311, which is the closest level for a support area.
