Ahead of the holiday break, S&P 500 returned to its 200-day moving average with the help of FOMC minutes. Most of the members favoring a slowdown of rate is seen as dovish by markets despite “various” members supporting a higher rate peak. The 200-day moving average has always been a major indicator of direction for the index. In addition to this average, two key resistances are just above it. The downtrend channels’ upper line is at 4120 and 4150 was a major support and resistance in the last 1 year period. If S&P 500 is able to break these levels, it will be a major signal for a trend change.

On the other hand, the bearish trend is still ongoing and it will be early to say that S&P 500 will, once again, will begin a long uptrend until a clear break happen.