Fears of a global banking crisis have weighed down on major equity markets, including the S&P 500 Index Futures (CME: ES), as investors move away from riskier assets in anticipation of the looming doom. The negative sentiments have been firmly driven by the recent US bank failures that seemed to have spread to their European counterparts.
With the US’s Fed decision firmly in investors’ decision-making, investors would be looking to see whether the US Fed will follow the European Central Bank (ECB) in hiking interest in the face of increased fear of a global banking crisis.
The bulls could see an opportunity as the price action pushes towards the 3881.00 support level, a significant level for the bears. If the bears can beam through the initial support level with significant volume, the bears could firmly target the support level at 3866.25 as the next level of significance.
The bulls could hope to reverse the current trajectory of the trend and could see a trading opportunity leading the index into the 3957.00 resistance level towards the next resistance level at 3978.25.
With the US Fed’s interest rates decision firmly in investors’ investment decisions, an opportunity could exist as fears of a banking crisis continue to weigh down the price action towards the 3881.00 and possibly the 3866.25 price level.
Sources: TradingView, Reuters.