Wednesday, 18 September 2019 04:24 GMT
img

S&P 500 Price Outlook: Traders on Edge as VIX Pops Ahead of Jackson Hole




(MENAFN - DailyFX) S & P 500 Price Outlook:TheS & P 500 dipped lower early in Thursday tradingbut eventually pared losses to end nearly unchanged from Wednesday's close Still, the VIX remained elevated heading into Friday trading Interested in equities? Check out theDailyFX Podcast with Andrew Milligan , head of global strategy at Aberdeen Standard Investments

S & P 500 Price Outlook: Traders on Edge as VIX Pops

The S & P 500,Dow JonesandNasdaq100 were faced with widespread uncertainty on Thursday as traders jostled for position ahead of incoming Fed speak that possesses great market-moving potential. Although the three indices pared major losses and the Dow Jones was dragged higher by Boeing (BA), the VIX Index remained elevated into the close which speaks to the fear amongst investors – which is understandable given the stakes.

S & P 500 Price Chart: 4 - Hour Time Frame (June – August) (Chart 1)

S & P 500 price chart

Chart created with TradingView

As it stands, markets are expecting a 25-basis point cut at the SeptemberFOMCmeeting – while others have called for a 50-basis point cut at minimum. Some analysts, myself included, argue the prospect of further easing has already been priced in which has allowed the S & P 500 to maintain its robust valuation despite an expanded trade war and inverted yield curve.

Sign up for ourFree Weekly Equity Webinarin which critical technical levels and fundamental themes are analyzed each week.

Therefore, if the assumption is correct, anything less than complete capitulation from Fed Chairman Jerome Powell and his peers could seriously disappoint stock traders and result in price declines which could potentially see the Index retest the trendline from June.

VIX Price Chart: 4 – Hour Time Frame (June – August) (Chart 2)

VIX chart

Chart created with TradingView

On the other hand, IG Client Sentiment Data suggests the S & P 500 may be destined for greater heights as traders remain net-short. For more technical analysis and fundamental updates on the major equity markets, follow@PeterHanksFXon Twitter.

S & amp;P 500 Price Outlook: Traders on Edge as VIX Pops Ahead of Jackson Hole

--Written by Peter Hanks, Junior Analyst for DailyFX.com

Contact and follow Peter on Twitter@PeterHanksFX

Read more: Canadian Dollar Price Forecast: USD/CAD Strength May Fade

DailyFX

MENAFN2208201900760000ID1098914907


S&P 500 Price Outlook: Traders on Edge as VIX Pops Ahead of Jackson Hole

Authors_Square_PromoteArticle_Ink2019

  Most popular stories  

Day | Week | Month