Thoughts on S&P 500's Reaction to Upcoming Fed Speak
Been watching the S&P 500 pretty closely lately, and I'm genuinely curious about how much more volatility we'll see heading into the next batch of Fed comments. With $EWZ trading around 35.34 today, it feels like there's a general nervousness in the broader market, even if it's not directly correlated. I'm leaning towards a scenario where the S&P 500 holds above the 5100 level through month-end, assuming no major hawkish surprises. My gut says there's about a 60% probability of this holding, largely because I think the market has already priced in a reasonable degree of 'higher for longer' rhetoric. A push below 5050 seems less likely, maybe 20%, unless we get something truly unexpected out of the inflation data or job numbers next week. What are others thinking? Do you see a deeper retest of support, or is consolidation the more probable path?
I'm also wondering how much impact the Fed comments really have anymore. It feels like so much is already priced in, but then sometimes there's a big reaction out of nowhere. What do you think traders are looking for specifically that could move the market?