The S&P 500 is under increasing pressure as it struggles to break through a key trend line. Recent small price movements since late November indicate that momentum is slowing down, with indicators turning bearish. The main resistance level to watch is at 6902/06. If the index manages to close above this, it could ease some downward pressure. The profit zone is around the 9-day and 50-day moving averages, located at 6761/6756, which could be targets for traders. Meanwhile, the EUR/USD is steady below 1.1650, impacted by a stronger dollar ahead of a significant Federal Reserve decision. In the UK, the GBP/USD hovers near 1.3300 as investors await results from important economic meetings. Gold prices have dropped below $4,200 due to rising U.S. treasury yields. Major cryptocurrencies like Bitcoin and Ethereum are showing slight gains, despite recent outflows from ETFs. Silver has reached new record highs, in contrast to the declines in gold and mining stocks. This difference may indicate a continued bullish phase for silver, while others encounter technical issues. The market is focused on upcoming financial policy meetings. While some assets like silver and cryptocurrencies appear promising, gold and the S&P 500 face challenges in the current environment. The S&P 500 is showing weakness after failing to break above the key resistance level of 6906. With fading momentum since late November, bearish indicators are becoming stronger. This suggests that put options or short positions could be profitable soon. Market pressure is increasing as we approach the next Federal Reserve policy meeting. The latest Consumer Price Index data from November came in at 3.4%, raising concerns that the Fed might maintain a “higher for longer” approach on interest rates. This uncertainty is likely hindering any upward movement in the index. We are seeking a break below the support zone at 6761/6756, which corresponds to the 9-day and 50-day moving averages. Keep in mind that an initial dip below this level might be a false signal, so we’ll look for a more confirmed break before increasing bearish positions. Traders might consider buying puts with expirations in late December or January to take advantage of potential volatility after the Fed’s announcement. This current market uncertainty resembles the situation in December 2018, when worries over Fed policy led to a sharp market decline, disrupting the usual year-end rally. Although the “Santa Claus rally” is a typical seasonal trend, the CBOE Volatility Index (VIX) has risen to 18.5 in the past week, indicating that traders are buying protection against a possible drop. The strengthening U.S. dollar adds to the cautious market mood, putting pressure on gold prices and key currency pairs. This widespread risk aversion supports a bearish outlook on equities. The market is clearly in a holding pattern, waiting for clear direction from the Fed before making its next significant move.

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