Last session’s shooting star signaled that we might see trouble, and now it looks like it’s about to materialize. The SandP 500 E mini contract initially tried to rally during Thursday’s trading, but gave back early gains as sentiment remained generally sour. We are around the 50-day EMA, so it makes sense to pay attention to technical analysis. If you break below the 3800 level, the SandP 500 can start to fall quite quickly. Advertisement Current Volatility Offers Great Stock Trading Opportunities – Don’t Miss It! Trade stocks now! This has been a very strong and impressive rally over the last several sessions, but its momentum is ending. This makes a lot of sense as the economic outlook has worsened. There is a lot of speculation that central banks around the world will continue to „rate less,” but frankly, that has nothing to do with the Fed. These are only reactions to the Bank of Canada and the Reserve Bank of Australia. For example, the European Central Bank felt the need to raise interest rates to the expected two percent, so it’s clear that not everyone is on the same page. Rally likely to stall Next week we have the Fed’s monetary policy meeting and the FOMC decision. The decision itself is expected to be around a 75-basis-point rate hike, and while some Wall Streeters have begun calling for 50-basis-points, the reality is that Fed board members no longer trade the stock market. so they don’t really care what happens to stocks. Last session’s shooting star signaled that we might see trouble, and now it looks like it’s about to materialize. The real question now is how the market will decide whether or not to support the 3800 level. If we break below this, we may fall to 3600 level in the long term. An alternative scenario is that we somehow reverse and clear the 3900 level, which would be a minor coup for bullish traders, paving the way for a move to the 000 handle. Without the Fed backing off on hawkish rhetoric, I just don’t see the stock market continuing to rally as it has in recent sessions.