The US Federal Reserve (Fed) yet again postponed a hike in interest rates from near zero levels even after weeks of enthusiastic speculation about whether it was about time for the central bank to announce a rate hike. This time around the developments in China, the world’s second largest economy, appeared to have influenced the decision in favour of maintaining a status-quo on low interest rates. The central bank has two more scheduled policy meetings this year, in late October and mid-December. Most analysts now expect a rate rise to come in December at the earliest. The updated FOMC forecasts revealed that the Fed expects Gross Domestic Product (GDP) growth for 2015 to be 2.1%, up from the 1.9% it estimated in June. However, it lowered its 2016 forecasts to 2.3% from 2.5%. The unemployment rate forecasts for 2015 and 2016 were lowered by 0.3% each to 5% and 4.8%, respectively. The S&P500 fell more than 0.5% since the start of the month and plunged more than 4.5% year to date settling in a bearish phase. The Index went back and forward without any clear direction with a wide range during the course of last week and closed in the red near the open of the week. The stochastic is showing bearish momentum and is below the 50 mid line. Expecting downward move to a weekly support at 1,891.50 on a break below previous week low at 1,891.50 (scenario 1) or a bounce off the weekly resistance at 1,973.0 (scenario 2). Usa500 is a CFD written over S&P 500 futures.