FundamentalOverviewThe upside for the S&P500 has been supported all along by the lack of bearish drivers. In fact, Trumpcontinues to get trade deals in the 10-20% range, which is widely expected andpriced in by now, and the economic data has been showing a rebounding economyfollowing the tariff-induced weakness in Q1. The last NFP and CPIreports have also been positive for the market as we got strong employment datawithout higher wage growth, and the inflation figures (although higher than theprior months) weren’t as bad as feared. The Fed’sdecision yesterday was very much expected and didn’t move the market atall. Rates were kept unchanged, and Waller and Bowman dissented voting for acut. The only change in the statement was the removal of the line saying that “uncertaintyhas diminished”. That was less dovish than expected but was ignored as everyonewas focused on the Press Conference.The Press Conference iswhat moved the market. In fact, the market was expecting Fed Chair Powell toopen the door for a rate cut in September conditional on the data, but he didn’tsay that. He just dodged the questions by telling reporters that they wouldlook at the totality of the data. That was interpreted as more hawkish thanexpected, although in my opinion he just kept his usual neutral stance.The market dropped but thelosses were quickly erased following the strongbeats from Microsoft and especially Meta. The data is what reallymatters. Central banks don’t matter much now because they don’t offer forwardguidance. They just delegate everything to the data. The data is what willdrive their decisions. Therefore, watch the data carefully because hawkish datawill likely trigger a correction as the market reprices expectations. In the bigger picture,given that the Fed's reaction function remains to either wait more or cut, themarket should eventually get back to its upward trend (barring growth scares).S&P 500Technical Analysis – Daily TimeframeOn the daily chart, we cansee that the S&P 500 just continues to print new all-time highs as the lackof meaningful bearish catalysts keeps the downside limited. This is now a “chasers”market as we move up by inertia with little to no new change in terms of fundamentals.From a risk managementperspective, the buyers will have a much better risk to reward setup around the6,200 supportto position for another leg higher. The sellers, on the other hand, will lookfor a break lower to increase the bearish bets into the 5,800 level next.S&P 500 TechnicalAnalysis – 4 hour TimeframeOn the 4 hour chart, we cansee that we have an upward trendline defining the uptrend. It seemedlike we were breaking to the downside yesterday following the slightly more hawkishFed Chair Powell Press Conference but following the strong beats on earningsfrom Microsoft and Meta, the market bounced back and rallied into a newall-time high. If we get another pullbackinto the trendline, we can expect the buyers to lean on it with a defined riskbelow it to position for further upside. The sellers, on the other hand, will lookfor a break lower to increase the bearish bets into the next major trendlinearound the 6,300 level.S&P 500 TechnicalAnalysis – 1 hour TimeframeOn the 1 hour chart, we cansee that we have a downward trendline defining the pullback into the upwardtrendline and, as the price broke above it, the buyers increased the bullishbets into new highs. Earnings-driven rallies generally don’t trigger sustainedtrends unless they are supported by macro drivers. Given the Fed’s stance, wecould get a pullback in the next days if the US data comes out hawkish. UpcomingCatalystsToday we get the US PCE price index, theUS Jobless Claims and the US Employment Cost Index. Tomorrow, we conclude theweek with the US NFP report and the US ISM Manufacturing PMI. This article was written by Giuseppe Dellamotta at investinglive.com.