Fed Hikes Rates Half-Point...SPX levels

$S&P 500(.SPX)$ $Volatility Index - main 2205(VIXmain)$ $Micro 10-Year Yield - main 2205(10Ymain)$ $ProShares UltraPro Short S&P 500(SPXU)$ 

Federal Reserve Chairman Jerome Powell has assured Americans that policymakers will do what it takes to rein in soaring inflation, acknowledging it could cause "some pain" - including job loss -

The US central bank was rolling out its most powerful policy tightening in decades.

 The Fed on Wednesday raised interest rates by 50 basis points for the first time since 2000 and Powell signaled similar moves were on the table for June and July.

Markets were encouraged by his reaction to a larger 75 basis point increase.

S&P500 levels: update SPX 

Technically, the market could continue its rise towards 4,350-75 where an important first level will be found. 4,200 ; 4,100 and 4,000 will remain lower heavy levels.

Regardless, this is a significant amount of gamma that would encourage dealers to continue to actively react to changes in market direction.

With the backdrop remaining unchanged, the S&P 500 is in negative gamma, creating the underlying conditions that lead to higher realized volatility.

•  Note that the spotlight should turn to the Bank of England, which is expected to raise rates to their highest level in 13 years.

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@Do_Trading

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