FundamentalOverview

The FOMC decision didn’tprovide anything new. In fact, the Fed delivered on expectations with nosurprises whatsoever. The central bank kept rates steady, reduced the QT pace, revisedgrowth lower and inflation higher, and kept the dot plot mostly unchanged.

Fed Chair Powellacknowledged the current uncertainty around Trump’s policies and the inflationoutlook but confirmed that the economy remains healthy, and the Fed is in agood position to wait for more clarity.

The only noteworthy commentwas the dismissal of the rise in the long-term inflation expectations in theUniversity of Michigan Consumer Sentiment survey as he labelled it as anoutlier given that other metrics show long term expectations stable or even slightlylower.

Today, we get the USJobless Claims figures which continue to show a stable labour market but it’sworth to keep an eye on them for early signs of weakness. The next key event isscheduled for Monday when we get the US Flash PMIs which coupled with the UMichinflation expectations triggered the growth scare last month.

S&P 500Technical Analysis – Daily Timeframe

On the daily chart, we cansee that the S&P 500 broke above the key 5720 level recently as the bouncecontinues to gather momentum. The buyers will likely have more conviction tostep in with a defined risk below the key level, while the sellers will want tosee the price falling back below the key level to pile in for new lows.

S&P 500 TechnicalAnalysis – 4 hour Timeframe

On the 4 hour chart, we cansee that the price broke above the downward trendline that was defining the bearishmomentum. We now have an upward trendline defining the bullish momentum. If weget a pullback into the trendline, we can expect the buyers to lean on it witha defined risk below the trendline to position for a rally into new highs. The sellers,on the other hand, will look for a break lower to gain even more conviction andpile in for new lows.

S&P 500 TechnicalAnalysis – 1 hour Timeframe

On the 1 hour chart, there’snot much else we can add here as the buyers will look for a bounce around thetrendline, while the sellers will look for a break lower. On an intraday basis,if the momentum holds, a break above yesterday’s high might see more buyers pilingin. The red lines define the average daily range for today.

UpcomingCatalysts

Today we get the latest US Jobless Claimsfigures.