The S&P 500 started strong but then fell, while Bitcoin also dropped before the market closed. This raises questions about whether important ES or NQ levels were impacted. Our upcoming focus will be on the FOMC and strategies for clients. After the US central bank’s policy statement, gold is trading around $4,230, affected by a weak US Dollar. Demand for gold is limited due to improved market sentiment. Ethereum is showing positive trends, with ETFs attracting $177.6 million, the largest inflow since October 28. Recent projections from the FOMC suggest only a 50-basis point rate cut between 2026 and 2027, with rates expected to be 3.4% by the end of 2026. The GBP/USD is gaining strength against a weaker USD due to the Federal Reserve’s 25-basis point rate cut. In the cryptocurrency market, Hyperliquid is trading above $28.00 despite losses overall, ahead of the Fed meeting. We discuss different broker options for 2025, including Forex and CFD brokers, some of which offer Islamic and Swap-Free accounts. This information is for guidance only; investors should research thoroughly before making any investments. The recent price movements appear hawkish, as we predicted. The S&P 500 attracted buyers but quickly reversed, signaling weakness ahead of the Federal Reserve’s meeting. Bitcoin’s rise and fall echoed this trend, indicating a broader risk-averse mood in the markets. This caution is reasonable, especially after the November 2025 Consumer Price Index report turned out higher than expected at 3.8%, slowing the disinflation we saw in 2024. A surprisingly strong jobs report, adding 210,000 jobs, gives the Fed little incentive to hint at faster rate cuts. The market is now adjusting to a longer period of higher interest rates. For index traders, a defensive approach is crucial as we head toward the FOMC announcement. The S&P 500’s inability to stay above the 5,500 level is a warning sign, making put options or spreads on ES and NQ futures appealing for protection. The CBOE Volatility Index (VIX) has risen to around 19, showing that traders are buying insurance against a potential decline. In addition to equities, the US Dollar remains volatile as markets consider the slow pace of rate cuts, with official estimates showing only 50 basis points of easing between 2026 and 2027. This uncertainty is why gold has stayed strong, remaining above $4,200 an ounce as a safeguard against persistent inflation and possible policy errors. Traders should monitor the dollar index for direction but should be ready for unpredictable, headline-driven movements in the coming weeks.

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