Current dynamics

After the publication of the minutes of the meeting of the US Federal Open Market Committee (FOMC) yesterday, quotes of the S&P 500 index rose to the level of 5040.00 and are preparing to update the February maximum of 5051.00.

US Federal Reserve officials remain cautious regarding the start of borrowing costs corrections, however, a phrase on additional tightening of monetary policy to reduce inflation to the target level of 2.0% was removed from the document. Nevertheless, most participants noted the risks of moving too quickly to ease parameters and emphasized the importance of carefully assessing incoming macroeconomic data. The agency remains concerned that soaring consumer prices are hurting households by driving up the cost of living.

The long-term trend in the instrument is upward: as part of the growth, a resistance level of 5040.00 was formed, and today the price is trying to break through it. If buyers manage to do this, the movement will continue to the area of 5150.00. If the level 5040.00 is held by sellers, a downward price correction will begin, the target of which will be the nearest support level of 4943.00. The RSI indicator (21) is near the overbought area, but does not enter it, showing the possibility of the trend continuation.

The medium-term trend is upward: as part of the growth, target zone 4 (5033.00–5009.00) was reached in early February, which market participants cannot yet break through, so the risk of a correction remains. In this case, one can expect index quotes moving in the area of key trend support of 4815.00–4792.00. After testing this zone, it will be possible to consider new purchases with the target of 5042.00. If market participants break through the level of 5042.00 and consolidate above it, the next growth target will be target zone 5 (5269.00–5245.00).

Support and resistance

Resistance levels: 5040.00, 5150.00.

Support levels: 4943.00, 4826.00.

Trading tips

Long positions can be opened above the level of 5060.00 with the target of 5150.00 and stop-loss of 5020.00. Implementation period: 9-12 days.

Short positions can be opened below the level of 4943.00 with the target of 4826.00 and stop-loss of 4985.00.