SP500 Stays Above 200DMA

The support for today's trading could be at the 200-day moving average (the green line), currently located at 4,480 USD. The short-term outlook seems bullish as long as the index trades above it.

However, considering this week's rally, traders might start taking some profits heading into the weekend, potentially dragging the SP500 index toward the mentioned support.

Additionally, Jerome Powell said that inflation is much too high during this week's speech. Therefore, if the Fed finds that raising rates by 0.25% is not enough, it will begin increasing by 0.5% at every Fed meeting. Still, if the Fed finds it is not curbing inflation adequately, it is willing to overshoot to the upside with rate hikes.

The central bank could be much more hawkish than currently priced in, likely leading to a sell-off in stocks in the rest of the year.

For now, the resistance is near the 4,590 USD area, where previous highs are located. If the index rises above that level, we might see a rally toward the all-time highs at 4,800 USD.