SP500 INDEX (Correction Then Continuation)

Stocks Set to Open Higher as Investors Await FOMC Minutes and Nvidia Earnings

Fed Governor Michelle Bowman stated on Friday that she expects inflation to remain elevated for "some time," but she also anticipates that price pressures will eventually diminish if interest rates are maintained at their current level. Bowman also reiterated that she would not rule out the possibility of raising rates if necessary. "While the current stance of monetary policy appears to be at a restrictive level, I remain willing to raise the target range for the federal funds rate at a future meeting should the incoming data indicate that progress on inflation has stalled or reversed," she said.

Additionally, the Wall Street Journal reported on Sunday that three regulatory agencies might significantly reduce a planned increase in capital requirements for the largest U.S. banks. According to the report, JPMorgan Chase CEO Jamie Dimon and other big bank CEOs lobbied hard, leading the Fed, FDIC, and the Comptroller of the Currency to cut the proposed 20% increase by approximately half potentially.

Investors are also closely watching developments in the Middle East following the helicopter crash that resulted in the deaths of Iranian President Ebrahim Raisi and the nation’s Foreign Minister.

Technically:
Currently, the SP500 is undergoing a corrective retracement targeting 5281.
At this point, we should monitor whether it breaches 5281 and 5266. Stability below that would indicate a continuation of the bearish trend towards 5226. Conversely, stability above 5281 would signal the potential beginning of a bullish trend.
but now stability above 5320 before correction, means will continue the bullish trend to get the targets we mentioned.

Pivot Line: 5301
Resistance Levels: 5320, 5340, 5357
Support Levels: 5281, 5263, 5227

Today’s expected trading range is between the support 5264 and the resistance 5370.