Market Analysis: Google Report Gives Positive Momentum to S&P 500 Price Ahead of Fed Decision

<img src="https://fxopen.com/blog/en/content/images/2023/07/SP500.jpg" alt="Market Analysis: Google Report Gives Positive Momentum to S&amp;P 500 Price Ahead of Fed Decision" /><p>Yesterday, after the close of the main trading session, the reports of Microsoft and Google, one of the leaders of the AI-related boom, were published.</p><p>MSFT&apos;s share price fell more than 3% post-market as, despite Microsoft&apos;s Q2 performance for 2023 exceeding analysts&apos; expectations, the company&apos;s forecasts for future periods turned out to be disappointing.</p><p>But the growth in the price of GOOG shares (in the postmarket) at the peak exceeded 7%. The company has demonstrated revenue growth in both search engines and YouTube and Cloud services, as well as through online advertising sales.</p><p>However, the main event of the week will take place today — namely, the news from the Fed at 21:00 GMT+3. Market participants are divided in their opinion: either the interest rate will be increased to 5.5% or remain unchanged at 5.25%. Also of great interest will be the words of Powell at a press conference at 21:30 GMT+3 regarding the rate of falling inflation, how much this will affect the current tight monetary policy.</p><p>Pending news from the Fed, trading volumes on the CME E-mini S&amp;P 500 futures were well below average on Monday and Tuesday, but today there is likely to be a surge in volatility.</p><figure><img src="https://lh4.googleusercontent.com/FRuOpoADeXCnr34eAqR3T7Q9ohRj13P4rES3z53KxL4Fzi1EJ7ohKPkDnDMfcueiOr-FEqRx9Cx_7njZ8POT2lhQKz1pVMAKMtfBrwpPwoM4LbECPDnSA9CvLwADtP-Qme-RMdJK1SBx9bvdlBkzFXE" alt="Market Analysis: Google Report Gives Positive Momentum to S&amp;P 500 Price Ahead of Fed Decision" loading="lazy" /></figure><p>This morning the price of the S&amp;P 500 index is near the highs of the year.</p><p>Possible resistance levels:</p><ul><li>psychological level 4,600;</li><li> upper limit of the ascending channel (shown in blue).<br></li></ul><p>Note the potential divergence between the price and the RSI indicator, which puts the S&amp;P 500 in a vulnerable position for a pullback.</p><p>Support can be provided by the median line of the rising channel and its lower border, as well as the level of 4,460, which worked as resistance in June.</p>