S&P500 INDEX Technical Analysis & Outlook Ahead of Fed Decision

S&P 500 Technical Analysis
The market is approaching a key week with potential volatility driven by the Fed Rate Decision and GDP data. Here's a breakdown of the scenarios:

Bullish Scenario: Continuation of the Uptrend:

• Key Levels:
  - Breakout Support: 6022
  - Pivot Point: 6058
  - Resistance Line: 6099 and 6143.
  
  
• Conditions for Bullish Continuation:
  - Price must remain above 6022 (Breakout Support Line).
  - Stabilization above the 6099 resistance will confirm upward momentum toward 6143 (next resistance).
  - This move would support a continuation of the uptrend toward a new ATH.
  
  
• Fed Rate Impact:
  - If the Fed cuts rates by 25 bps, the market may interpret this as dovish, fueling bullish sentiment and risk appetite.
  
  Bearish Scenario: Continuation of Downtrend:
• Key Levels:
  - Breakout Support Line: 6022
  - First Support: 5971
  - Next Supports: 5932 and 5863.
  
  
• Conditions for Bearish Reversal:
  - Price must break and close below 6022 on a 4-hour candle.
  - A break below this level opens the door to the next support at 5971.
  - Further bearish momentum could drive the price toward the Strong Support Zone around 5863.
  
  
• Fed Rate Impact:
  - If the Fed holds rates steady at 4.75% or signals hawkish intentions (e.g., no future rate cuts), bearish momentum may build due to reduced liquidity expectations.
  
  Trend Outlook:
  
  - Uptrend Continuation: Above 6022 and confirmed by a breakout above 6099.
  - Downtrend Continuation: Below 6022, targeting 5971 and lower levels.
  
  Key Summary:
  • Bullish Confirmation: Hold above 6022 and break above 6099.
    
  • Bearish Signal: Break and close below 6022, with lower targets of 5971 and 5932.
    
  • Fed & GDP Impact: Monitor Fed decision for rate cuts (bullish) or no change (bearish).