While the 10-year yield is close to 2.40%, there has been a sell-off in US Treasuries.

S&P 500 price forecast: Bulls might be able to reclaim the 200-DMA, which could open up the doors for more gains.

After Monday's hawkish comments by Fed Chief Jerome Powell (who said that "inflation was too high") and opened the door to 50 basis point increases, US stocks recovered Tuesday

The S&P 500 is gaining 1.10% and currently sits at 4517 above its 200-day moving mean (DMA), which is a positive signal for dip investors. The tech-heavy Nasdaq is up almost 2% to 14,106.28. Meanwhile, the Dow Jones Industrial rises 0.69% to 34792.36.

Jerome Powell, the chief of the US central bank, stated Monday that if it was deemed appropriate to act more aggressively, by increasing the federal funds rate by 25 basis points or more at a meeting, then we will.

Money market futures are pricing at least 63.9% of a 50-basis point increase in Federal Funds Rate (FFR), as indicated by CME Fed Watch Tool.

The US Treasury yields are rising, indicating that the sell-off in US Treasuries is continuing. The benchmark 10-year note gained six basis points to 2.384%. At 98.461, the greenback is only 0.01% lower.

Sector-wise, consumer discretionary and communication services rose 2.65%, 2.17% and 1.62% respectively. The energy sector is down 0.57% due to Russia-Ukraine tussles and Germany's backpedaling of the Russian oil ban.

S&P 500 Price Outlook: Technical outlook

As mentioned, the S&P 500 broke through the 200-DMA at 4473.08 A daily close above this level would allow for further gains. Stock traders must be aware that equities can be highly affected by market mood before placing new bullish bets on S&P 500.

The September 4545.85 resistance is the first for the S&P 500. The next resistance would be February 2, daily peak at 4595.81. This is short of the 4600 mark.