Is the Market Rebound Already Over?

Is the Market Rebound Already Over?
A Wall Street sign outside the New York Stock Exchange, on Jan. 24, 2022. Ed Jones/AFP via Getty Images
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The rebound in the stock market following Wednesday’s interest rate hike may already be over. The SPDR S&P 500 ETF Trust, which tracks the broad stock market, stalled out at important resistance.

As you can see on the following chart, SPY reversed off of the $430 level. Savvy traders were expecting this and here’s a logical reason for it: This was a support level, and support can turn into resistance.