Technical Analysis

S&P500 (SPX) Price Analysis – March 22, 2023

By LonghornFX Technical Analysis
Mar 22, 20233 min

Daily Price Outlook

The S&P 500 (SPX) is currently trading 1.30% higher at 4,002.9. The index is increasing as investors shift their focus towards the Fed's policy meeting, and the volatility in the bank sector decreases ahead of the event.

Banking Fears Cool Down

The stock market experienced a cautious rebound on Wednesday as fears regarding the banking industry eased ahead of the Federal Reserve's critical policy meeting. Bank shares rose overnight, indicating that US Treasury Secretary Janet Yellen's efforts to ease tensions were successful.

Yellen stated that the Federal Reserve's new Bank Term Funding facility and discount window loans were providing the banking industry with liquidity, which helped alleviate worries about liquidity.

Furthermore, the stock of First Republic Bank (FRC) rose by 29.47% to $15.77. Yellen's promise of further support for banks fueled an increase in the S&P 500, particularly in bank stocks, especially those owned by First Republic.

FOMC Meeting Ahead

At the current two-day monetary policy meeting, members of the FOMC will assess economic forecasts, and they are expected to raise the Fed funds target rate by another 25 basis points as part of their continuous efforts to control inflation.

However, market experts anticipate that more attention will be paid to Chairman Jerome Powell's remarks about the economy, inflation, and how he would handle worries about recent banking issues, rather than the rate rise itself.

In addition to this, the Fed's predictions for the direction of future interest rate rises will also be of interest to investors, even though markets are already pricing in reductions later this year.

The gains made by the S&P 500 Index coincide with the start of the Fed meeting, and many anticipate that it will result in a quarter-point rate rise on Wednesday.

Most Active Stocks

Major US stock indices experienced an increase on Wednesday, with the energy and banking sectors showing particularly strong growth. Following discussions between JPMorgan CEO Jamie Dimon and other major banks regarding investment in First Republic Bank, its shares increased by 29.47%.

Several regional banks, including U.S. Bancorp (USB), Comerica Inc (CMA), and KeyCorp (KEY), also saw significant price increases, with the latter experiencing a gain of over 9%. Furthermore, according to data on automobile registrations, Tesla Inc. was poised to report one of its strongest quarters in China, contributing to a 7.82% increase in the company's stock price.

 S&P500 Price Chart - Source: Tradingview

S&P500 Intraday Technical Levels

Support      Resistance

3927            3966

3902            3981

3887            4006

Pivot Point: 3942

S&P500 – Technical Outlook

The S&P 500 (SPX) has been steadily rising, surpassing the $3,970 mark and heading towards the next resistance level of $4,085. On the lower end, the immediate support level for SPX is at $3,850, and breaking below this level may result in further selling towards the $3,765 mark.

Despite this, leading technical indicators such as RSI and MACD are in a buying zone, indicating a bullish bias among investors.

A bullish breakout above the $4,085 level could create additional buying opportunities towards $4,160 or even higher, signaling positive market sentiment.


    * GOLD Price Analysis – March 22, 2023

    * EUR/USD Price Analysis – March 22, 2023

    * S&P500 (SPX) Price Analysis – March 20, 2023



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