S&P 500 Futures Price Analysis: Teasing falling channel breakout ahead of Fed

• S&P 500 Futures off the lows but ranges in the hourly falling channel.
• Hourly RSI turns bullish, suggests more room for the upside.  
• US futures face a stack of healthy resistance levels ahead of Fed.

S&P 500 futures, the risk barometer, has recovered from daily lows of 3204 but the bulls lack follow-through amid pre-FOMC decision nervousness and growing fears over the second-wave of coronavirus globally.

From a near-term technical perspective, the price is battling the 21-hourly Simple Moving Average (HMA) at 3218 while keeping its range play intact within a potential falling channel pattern.

The S&P 500 futures briefly managed to regain the latter, although faced rejection just below the horizontal 50-HMA at 3224.50.

The bulls need a convincing break above a cluster of resistance levels seen around 3225 to validate the pattern. That supply zone is the confluence of the bearish 100-HMA and falling trendline resistance.

The next upside target is the horizontal 200-HMA of 3232 en route 3250. The hourly Relative Strength Index (RSI) has turned bullish above 50.00, suggesting that the further upside looks likely ahead of the Fed.  

To the downside, the daily low could be retested on a failure to take out the 3225 zone, with sellers then aiming for the falling trendline support at 3200.

S&P 500 Futures: Hourly chart

Reprinted from fxstreet, the copyright all reserved by the original author.