Market Analysis: E-mini S&P 500 Price Drops to Lowest in a Month

<img src="https://fxopen.com/blog/en/content/images/2023/08/sp500-1.jpg" alt="Market Analysis: E-mini S&amp;P 500 Price Drops to Lowest in a Month" /><p>Yesterday, the S&amp;P 500 fell below the 4,440 level — the last time the price of the S&amp;P 500 was this much was on July 12.</p><p><strong>The following contributed to the decline in the stock market:</strong><br>→ strong US retail sales data (actual: +0.7%, expected +0.4%, last month: +0.2%). Market participants fear that interest rates may remain high for longer;<br>→ information that Fitch may downgrade further.</p><p>Thus, the decline amounted to more than 3.5% from the highs of the year recorded at the end of July. Will the decline continue? MarketWatch published the opinion of stock market strategist Hayes Martin: the correction could continue from 8% to 13%. However, the good news is that, according to the strategist, it will not break the current bull market.</p><p><strong>Bullish arguments for the 4-hour chart:</strong><br>→ the price is at the lower border of the descending channel (shown in red), which gives reason to expect a rebound;<br>→ many technical indicators (for example, stochastic) show oversold conditions;<br>→ this morning the E-mini S&amp;P 500 did not develop a fall — perhaps yesterday&apos;s fears were emotional.</p><p><strong>Bearish arguments:</strong><br>→ the level 4,460 can serve as resistance;<br>→ the median and upper line of the red channel can also provide resistance.</p><figure><img src="https://fxopen.com/blog/en/content/images/2023/08/16a–2-.png" alt="Market Analysis: E-mini S&amp;P 500 Price Drops to Lowest in a Month" loading="lazy" width="2000" height="1099" srcset="https://fxopen.com/blog/en/content/images/size/w600/2023/08/16a–2-.png 600w, https://fxopen.com/blog/en/content/images/size/w1000/2023/08/16a–2-.png 1000w, https://fxopen.com/blog/en/content/images/size/w1600/2023/08/16a–2-.png 1600w, https://fxopen.com/blog/en/content/images/size/w2400/2023/08/16a–2-.png 2400w" sizes="(min-width: 720px) 720px" /></figure><p>An important factor that will affect the price of the E-mini S&amp;P 500 will be information from the FOMC (to be published today at 21:00 GMT+3). Bloomberg writes that the topic of discussion at the Fed is changing from &quot;how high should the rate be&quot; to &quot;how long will it be held at a high level.&quot; Get ready for spikes in volatility tonight.</p>