S&P 500 index lost more than 0.4% of its value yesterday.
The main driver, which triggered the fall, was the approximation of the yield of US 10-year bonds to the important mark of 3%. The last time a similar picture was observed in 2014. According to experts, the increase in yield is caused by expectations of increased inflation in the US against the background of economic growth and an increase in the interest rate at least three times this year. If we compare the factor risk premium on US and German bonds, the spread between them increased significantly and reached 2.37%. As a result, the US dollar will grow because of capital inflows, and the stock market may continue to correct.
As for macroeconomic indicators, they continue to show growth: the Consumer Confidence Index reached 128.7 points, new home sales also rose to 0.694 million in March. As for the securities, the shares of Google's search giant significantly dwindled, which, amid rising costs for various start-ups, shows a reduction in the company's profitability: the securities lost more than 3%.
Support and resistance
Stochastic is at 46 points and does not provide a clear signal for the opening of positions.
Resistance levels: 2656.3, 2675.8.
Support levels: 2617.2, 2597.7.
Long positions can be opened from the support level of 2/8 Murray or 2617.2 with protective orders at 2597.7 and take-profit at 2656.3.
S&P500 index of the American stock exchange
|Support levels||2617.2, 2656.3, 2656.3, 2675.8|
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