The S&P 500 index opened to new highs but quickly slipped lower, following other stock markets into red territory on Monday. This move followed renewed concerns over tighter regulations in China.
On the S&P 500, the risk-sensitive tech shares index fell 0.12% on the developments. However, market action is muted as traders prefer to stay on the sidelines in a big week of earnings and economic data.
The FOMC will deliver the latest interest rate announcement and statement on Wednesday, followed in 30 minutes by the routine press conference with Fed Chair Jerome Powell. The first estimate of the annualized US GDP is due on Thursday.
Several top S&P 500 companies will also deliver their quarterly results. Facebook, Apple, Tesla, Alphabet, Microsoft and Amazon are all on the cards.
The S&P 500 index is presently testing resistance at the 4408.11 price mark (88.6% Fibonacci extension from the 25 March-7 May-19 May price swing). If this resistance is broken, 4453.54 becomes a new upside target, being the 10% Fibonacci extension site from this price swing.
On the flip side, a rejection and pullback from 4408.11 allow for a correction that targets 4393.03 initially. 4368.58 and 4301.30 also serve as other downside targets for the bears. 4275.94 and 4257.90 are also potential targets to the south but only become viable if the correction is extensive.
