Markets continued digesting Fed`s rhetoric from the September`s FOMC meeting, where “higher for longer” was a pivotal point. The S&P 500 finished another losing week, ending September 4.9% lower. The index is still holding at 10% year-to-date gains, however, some portion of total gains has been erased with the moves during September. The index finished the week at level of 4.288 after reaching its lowest weekly level at 4.244.
During the previous week the RSI index created an oversold momentum, in which sense, some short reversals might be expected in the week ahead. However, the markets are still trying to understand the latest projections from the FOMC meeting, in which sense, it should not be expected to see some significant return to the higher ground. As per current charts, there is still space for further testing of the 4.200 level, while there is also equal potential for 4.350 to be reached in the week ahead.
During the previous week the RSI index created an oversold momentum, in which sense, some short reversals might be expected in the week ahead. However, the markets are still trying to understand the latest projections from the FOMC meeting, in which sense, it should not be expected to see some significant return to the higher ground. As per current charts, there is still space for further testing of the 4.200 level, while there is also equal potential for 4.350 to be reached in the week ahead.
