Trading Outlook on the S&P 500

With the Fed minutes just moments away, the S&P 500 could see a continuation in higher price momentum if the cup and handle technical trading pattern plays out entirely.


We have seen the formation of a cup and handle technical pattern on the S&P 500 with a breakout test of the 3904 supports in full swing. We could see prices push even higher if the Fed meeting minutes support a lower-than-expected rate hike in December. This could see prices gain momentum higher to the 4154-resistance level. If the Fed news disappoints, we could see short sellers dive in and lower prices.


A possible long entry exists from opening price levels around 4005, with a potential target point around the 4154-resistance level if supported by fundamentals. Risk measures should be in place as this could be a high-risk entry point ahead of the Fed meeting minutes.

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