SPX500 – Markets Brace for GDP and PCE-Driven VolatilitySPX500 – Overview
More Fedspeak, More Questions
Wall Street points to a soft opening on Thursday as investors digest Fed Chair Jerome Powell’s caution on stretched equity valuations, a warning that injected a note of restraint after this year’s strong market rally.
Traders are bracing for high volatility, with a heavy lineup of Fed speakers today and key U.S. data releases ahead: the final estimate of Q2 GDP later today and the PCE inflation report tomorrow.
Stronger-than-expected GDP could dampen rate-cut expectations and pressure equities, while weaker data would support a more dovish outlook.
Technical View
The SPX500 remains in a range-bound setup, awaiting a catalyst for the next directional breakout.
Bearish Scenario:
A confirmed 1H close below 6,634 would signal a downside break, targeting 6,597 → 6,577.
Negative sentiment could accelerate if GDP prints stronger than expected, reinforcing a bearish bias.
Bullish Scenario:
Stability above 6,635 keeps price consolidating between 6,635 – 6,663.
A confirmed 1H close above 6,663 would trigger bullish momentum toward 6,698.
Key Levels
Pivot: 6,635
Resistance: 6,663 – 6,698
Support: 6,615 – 6,598 – 6,577
The SPX500 is poised for data-driven volatility. Watch GDP and PCE prints for a breakout cue:
Strong GDP → bearish break below 6,634.
Softer data → bullish breakout above 6,663.
