Dip buyers will look to test the waters in the day ahead | Forexlive

The mood music is looking better today as equities are building off the optimism from yesterday. Fed chair Powell reaffirmed that the central bank isn’t in a hurry to change its policy stance but helped ease worries in markets in saying that tariffs inflation is likely to be transitory. Yes, welcome back to 2021-2022 again I guess.

S&P 500 futures are seen up 0.5% today as dip buyers will be looking to build on the momentum yesterday. The first test will come right at the open later, with the main index set for a run against a key near-term level:

The 100-hour moving average (red line) helped to keep a lid on the recovery yesterday. And that will again be a key focus in getting a read on the near-term bias on the latest bounce this week. The 200-day moving average isn’t too far away after that at around 5,746. So, that’s another one to watch in gauging the dip buying appetite on the week.

For now, there are some tentative signs of a more modest bounce when you consider the near-term technicals as seen above. That hasn’t been the case since the end of February. So, it’s a signal that dip buyers are looking to test the waters again as we look towards the end of the month/quarter next week.