Minutes from the FOMC meeting released on Wednesday suggest that the Fed would not shy away from hiking rates should inflation remain sticky. This meeting, however, was held before the release of the most recent soft CPI report.
Key Points
- The release of the FOMC Meeting Minutes caused the S&P 500 to dip yesterday, although S&P500 futures edge higher today.
- Reactions to the meeting may have just been kneejerk reactions, however, as recent CPI data suggests inflation might be slowing.
- The 5362.75 is a key level for the price in Thursday’s trading session.
S&P 500 Daily Price Analysis – 22/05/2024
The S&P 500 index futures dipped by 0.32% on Wednesday after the release of the FOMC Meeting minutes. It has since continued its rally in the pre-market hours of Thursday, with a 0.59% gain.
In the meeting, participants agreed that they would tighten monetary policies if inflation remained sticky. This decision did not bode well for the index market at large. Chances are that the reactions are only kneejerk, though, as the meeting took place before the release of the most recent inflation data, where Inflation clearly eased and increased rate-cut bets.
From the technical point of view, major technical indicators give a clear bullish outlook for the index futures, including the 50 EMA and the RSI.
S&P500 Intraday Technical Analysis – 22/05/2024
After breaking out of the resilient 5349 resistance level, the price made a retracement to it, and now, it looks to be continuing the bullish run. The first key level ahead of it is the 5362.75 all-time high.
On the flip side, if the price dips below the resistance-turned-support level, the traditional pivot points tool suggests that the next key levels are at 5328 and the lowest point so far this week, 5306.75
Key Economic Data and News to Be Released Today
The United States Initial Jobless Claims report drops today. Expectations are that it’ll come in at 220k. Afterward, the S&P Global Manufacturing and Services PMI takes center stage before the New Home sales report finally shows up.
S&P500 Pivot Point Levels 22/05/2024
Based on the hourly chart, here are the key S&P 500 Piot Point levels to watch as of 22/05/2024.
| S2 | S1 | P | R1 | R2 |
| 5285.50 | 5306.75 | 5328.00 | 5349.25 | 5370.50 |
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