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Looks like the FOMC meeting minutes helped push U.S. equities higher yesterday.

Will the S&P 500 index get enough momentum to bust through a short-term resistance zone?

Take a look at the 1-hour chart:

S&P 500 Index: 1-hour

S&P 500 Index 1-hour Chart

S&P 500 Index 1-hour Chart

The S&P 500 index has been making lower highs and lower lows since the 100 SMA crossed below the 200 SMA on the 1-hour time frame.

Will U.S. equities see more losses in the next couple of days?

The odds favor the bears as the index finds resistance at the falling trend line that hasn’t been broken since late April.

It also doesn’t help that the trend line lines up with the 100-hour moving average as well as the 61.8% Fibonacci retracement of the last major downswing.

Even Stochastic isn’t helping buyers with its lower highs supporting a short-term bearish divergence on the chart.

In case you missed it, U.S. equities are finding demand this week after weeks of selling. The FOMC meeting minutes being unclear about the Fed’s tightening schedule beyond the next months also helped investors who were worried about a prolonged period of 50-basis point rate hikes.

But a fresh round of risk aversion could trigger the extension of the index’s downtrend.

Inflation and global growth concerns could return under the spotlight when major economies print weaker-than-expected economic reports, or when we see headlines hinting of extended conflict in Ukraine.

The S&P 500 index could bounce from its current levels and make its way to the 3,800 zone or even make new monthly lows.

Watch this one closely, errbody!

This content is strictly for informational purposes only and does not constitute as investment advice. Trading any financial market involves risk. Please read our Risk Disclosure to make sure you understand the risks involved.