Markets are mostly unchanged after today’s FOMC, but today’s action confirmed a few key levels that I’ve been watching.
Today’s video updates include DXY, SPX, BTC, and ETH.
US Dollar Index (DXY)
Support: 103.60 and 102-103
Resistance: 104.50 and 105.60
Idea: DXY is lower today on a business-as-usual rate hike and press conference from Powell. However, it’s still holding above the 103.60 area for now, which is the location of a key horizontal level and the trend line from November 15th. DXY would have to close above 104.50 to re-expose 105.60 and below the 103.60 region to open up the 102 to 103 area.
S&P 500 (SPX500)
Support: 3,910 and 3,755
Resistance: 4,070 and 4,140
Idea: SPX is mostly unchanged on the day following today’s rate hike and press conference. So for now, the future direction is unclear given that SPX is in the same range it entered in the first half of November. A daily close above 4,070 would open up 4,140 and potentially 4,300, whereas a daily close below 3,910 would be bearish and expose 3,755.
Support: $17,530 and $17,270
Resistance: $18,200 and $18,500
Idea: BTC rallied into today’s FOMC, so the pullback on the 50 bps hike was no surprise as late longs got flushed. BTC also retested the trend line support at $17,500 today, which is a level I mentioned in yesterday’s video. It’s going to take a close below that and $17,300 to open up lower levels. Alternatively, resistance for BTC comes in at $18,200 and $18,500.
Support: $1,300 and $1,235
Resistance: $1,350 and $1,420
Idea: ETH is down today after testing the $1,350 range highs for a second time. However, the $1,300 area (specifically $1,297) is still holding as support. It will take a daily close below that for Ethereum to turn bearish toward $1,235 and potentially lower. On the other hand, a daily close above $1,350 would open up the $1,420 area.