The S&P 500 holds a cautiously bullish tone as the Fed ends quantitative tightening on Dec 1. Instead of letting Treasuries/MBS roll off, the Fed will reinvest MBS runoff into T-bills — effectively stabilizing the balance sheet and preventing further reserve drainage. This helps avoid liquidity shocks like the 2019 repo crisis and supports bank balance sheets amid TGA rebuilding. However, reduced Fed MBS demand keeps mortgage rates elevated — headwinds for home sales and construction.
Key Levels: Support 6,799.0 | Resistance 6,939.7
Investor Takeaway: RSI ~49 flat, MACD neutral — liquidity relief supportive for markets, but QT end has mixed real-economy effects (housing slowdown risk).