The S&P 500 is facing growing pressure as it struggles to overcome a trend-channel line. Recent small ranges since late November suggest diminishing momentum, with stochastics shifting to a bearish stance.<\/p>\n
The key resistance level is at 6902\/06, and surpassing this with a close could lessen downward forces. The profit zone lies at the 9-day and 50-day moving averages, at 6761\/6756, suggesting potential targets for traders.<\/p>\n
Elsewhere, the EUR\/USD remains steady below 1.1650 due to the strengthening dollar ahead of an important Fed decision. In the UK, the GBP\/USD holds near 1.3300 as markets await outcomes from major economic meetings.<\/p>\n
Gold prices have dipped beneath $4,200 amid rising US treasury yields. Major cryptocurrencies like Bitcoin and Ethereum show minor gains despite recent ETF outflows.<\/p>\n
Silver has reached new all-time highs, contrasting with the declines seen in gold and mining stocks. This difference suggests a potential ongoing bullish phase for silver, while others face technical challenges.<\/p>\n
The market remains focused on key upcoming financial policy meetings. While some assets such as silver and cryptocurrencies show potential promise, others like gold and the S&P 500 face more challenges in the current climate.<\/p>\n
The S&P 500 is showing signs of weakness after failing to break above the key 6906 resistance level. With momentum fading since late November, we are seeing bearish indicators gain the upper hand. This suggests that puts or other short-oriented derivative positions could become profitable in the coming weeks.<\/p>\n
This market pressure is building as we head into the next Federal Reserve policy meeting. The latest November Consumer Price Index data, which came in at a sticky 3.4%, has reinforced fears that the Fed may signal a “higher for longer” stance on interest rates. This fundamental uncertainty is likely what is capping any upside moves in the index.<\/p>\n
We are looking for a break below the support zone at 6761\/6756, which represents the 9-day and 50-day moving averages. Remember that a first dip below this level could be a fake-out, so we will be watching for a second, more confirmed break to add to bearish positions. Traders might consider buying puts with expirations in late December or January to capture any increased volatility following the Fed’s announcement.<\/p>\n
This current market choppiness is reminiscent of what we saw back in December 2018, when similar anxiety over Fed policy caused a sharp market decline and disrupted the typical year-end rally. While the so-called “Santa Claus rally” is a common seasonal trend, the CBOE Volatility Index (VIX) has crept up to 18.5 in the past week. This indicates traders are actively buying protection against a potential drop.<\/p>\n
The firming U.S. Dollar is adding to the cautious mood, weighing on gold prices and major currency pairs. This widespread risk aversion provides further confirmation for our bearish outlook on equities. The market is clearly in a holding pattern, waiting for definitive guidance from the Fed before making its next major move.<\/p>\n
Create your live VT Markets account<\/a>\u00a0and\u00a0start trading<\/a>\u00a0now. <\/b><\/p>\n","protected":false},"excerpt":{"rendered":" The S&P 500 faces resistance, silver hits highs, while gold and currencies react to policy expectations.<\/p>\n","protected":false},"author":62,"featured_media":16985,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[59],"tags":[],"class_list":["post-36284","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-live-updates"],"acf":{"acf_article_selection_author":null},"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/www.vtmarkets.com\/en-asia\/wp-json\/wp\/v2\/posts\/36284","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.vtmarkets.com\/en-asia\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.vtmarkets.com\/en-asia\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-asia\/wp-json\/wp\/v2\/users\/62"}],"replies":[{"embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-asia\/wp-json\/wp\/v2\/comments?post=36284"}],"version-history":[{"count":0,"href":"https:\/\/www.vtmarkets.com\/en-asia\/wp-json\/wp\/v2\/posts\/36284\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-asia\/wp-json\/wp\/v2\/media\/16985"}],"wp:attachment":[{"href":"https:\/\/www.vtmarkets.com\/en-asia\/wp-json\/wp\/v2\/media?parent=36284"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-asia\/wp-json\/wp\/v2\/categories?post=36284"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-asia\/wp-json\/wp\/v2\/tags?post=36284"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}