What would give sellers in S&P some hope through the FOMC decision?

The S&P index is working on its fifth day in a row higher. Having said that, the index is only up three points higher today or 0.06% at 4646.68. Nevertheless, the buyers are in full control.

What would be a bearish sign that sellers might anticipate further probing to the downside?

The level that interests me the most in the S&P is 4588.97. That level was a high close going back to July.

On December 1, the price closed above that level at 4594.64 but quickly reversed the next trading day. Last Friday the price was able to close back above that level and it’s been stepping higher since that time.

Looking at the hourly chart above, a move below 4588.97 would also take the price back below its 50-hour moving average at 4595.18. So there would be two short-term bearish clues.

Helping to confirm the downside on a break of 4588.97 would be a move back below its 100-hour moving average 4577.90. On December 6 of last week, the price low tested that 100-hour moving average and found willing buyers. A break below (and staying below) would help confirm the downside bias and should lead to more downside probing from a short-term technical perspective in the broad stock index.

This article was written by Greg Michalowski at www.forexlive.com. Source