S&P 500 and Nasdaq forecast: Fed hearing brings markets around. Indices continues to decline following Powell’s remarks

S&P 500 and Nasdaq 100 headed lower after a tough struggle

Prior to Powell’s appearance with Congress, the S&P 500 began to decline, while it mostly maintained this trend over the weekend. Although the retreat had been anticipated for some time. The volatility index’s utter absence of worry marked that its upward trend would face little obstacle.

The psychological threshold of 4500, nonetheless, turned out to serve as a point in the dirt which markets were not willing to cross. The point equivalent of the April 2022 upswing top of 4510 was added to the resistance.

S&P 500 Technical Perspective

Now that the RSI has returned to its usual range while the MACD appears to be on the verge of indicating a bearish crossing. Everything seem quite distinct. It would be interesting to see if the downturn extends into the following week. Possibly reaching 4325 or the 61.8% Fibonacci recovery of the significant 2022 sell-off at about 4310. The negative option would seem to represent the most likely one based on Friday’s market activity.

Remarks made at the ECB’s debate at the central bank symposium in Sintra, Portugal, on the next Wednesday. Involving the chiefs of the BoE, ECB, & Fed are anticipated to increase turbulence. Markets might be affected by US PCE on Friday, when a persistent core PCE report seems set to send US shares down over the coming weekend.

After Hit and Run, the NASDAQ 100 declines.

Prior to our most recent weekly estimate, the tech-forward Nasdaq 100 Index rose all the way to the top of a rising spike. After pulling down. Once again, the absence of any negative defense, as seen by a VIX score at rock bottom levels. Indicated that the uptrend may continue into overvalued zone.

Nasdaq 100 Technical Perspective

The convergence area of resistance, which included the 15,260 stage, the top part of the pitchfork. Plus. the 78.6 Fib from the 2022 sell-off, seemed to be too strong to get past. Prices are currently over the top parallels; if there is a prolonged decline the following week, prices may go in that direction. Support lines are located at 14,367, which corresponds to the 61.8% of Fib retrace of the identical significant sell-off in 2022. The Nasdaq Composite is still overbought amid the swing downward although it has ways of going.