SP500 down sharply as Fed disappoints

Equities sold-off sharply on Wednesday and Thursday and the SP500 index was down 1.8% during the Frankfurt session on Thursday as it seems that yesterday's FOMC meeting was not dovish enough, which disappointed market participants.

The index has now dropped below the stronger uptrend line, which effectively canceled the immediate bullish trend and indices might be due for a larger correction.

The price is now testing previous highs at around 3,130 USD and if this level is taken out, the short-term bearish trend could be confirmed, targeting 3,070 USD.

However, as long as the SP500 index trades above the 200-day moving average (3,009 USD), the medium and long-term trend still seem bullish. 

The market has been very overbought lately and a correction was needed in order to maintain a healthy uptrend. 

On the other hand, if bulls push the index back above 3,190 USD, the short-term trend could change back to bullish. 
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