S&P 500: Options Market Pricing For Fed Decision

The S&P 500 is in focus as the Fed's decision is approaching. The options market has priced in some crucial trading levels. Reuters has taken a look at them.

This week is important because of the debt-ceiling voting. The S&P 500 is doing okay, even with this happening. The Senate voted on the bill yesterday. Most people voted for it. The S&P 500 is close to its highest point in August 2022.

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Many people thought the debt ceiling would pass easily. Investors were hopeful. But some thought it would be a close call. Few people expected a default to happen.

Investors are waiting for the Federal Open Market Committee meeting on June 13-14. The Federal Reserve will make a decision about their policy and give clues for future rates. The trading levels for the S&P 500 index are important to understand. The options market outlook will help with this.

The S&P 500 went up by 0.99% to close at 4,221.02 on Thursday. On June 16, the highest interest for out-of-the-money Call options is at the 4,300 Call strike. This means the level could be a tough resistance soon.

Support: If there's a sell-off in the short term, the $4,150 Put strike level could be a decent support. That's because there's substantial open interest accumulation there.

Open interest levels give a rough idea about support and resistance. Big news or macro events can change stock prices and open interest levels.

The next thing to be read is about Peter Schiff who thinks treasury securities aren't really safe. He says people don't really understand the main problem.

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