Current trend 

S&P index continues to recover: currently the rate is 2681.1. The nearest support level is at 2675.8.

Market participants are in anticipation of a decision on interest rates, and therefore, it is unlikely to expect any movement until Wednesday. The probability of changing the monetary policy is more than 60%. Published data on the number of new jobs in the non-agricultural sector were significantly lower than expected: 103K against the forecast of 200K. However, if we consider the labor market as a whole, the unemployment rate in the US is close to the minimum values for the last 17 years (4.1%), which also increases the probability of an increase in the rate at the next meeting. It is also worth noting that the tax incentives adopted by Donald Trump can significantly increase inflationary pressures in the country: bonds, protected from rising prices, have already begun to add to the yield, showing growth of 2.1%. For the stock market, a rate increase is a negative factor that can cause a significant correction.

Support and resistance

Stochastic is at the level of 95 points and indicates the possible correction.

Resistance levels: 2695.3, 2702.5.

Support levels: 2675.8, 2656.3.

Trading tips

Short positions can be opened from the resistance level of 5/8 Murray or 2675.8 with protective orders at 2695.3 and take-profit at 2656.3.

S&P500 index of the American stock exchange

BuySellSpread
2799.92799.54

Scenario

TimeframeDay's Range
RecommendationsSELL STOP
Entry Point2675.8
Take Profit2656.3
Stop Loss2695.3
Support levels2656.3, 2675.8, 2695.3, 2702.5
SPX: general review

The material published on this page is produced by the Claws&Horns Company and should not be considered as the provision of investment advice for the purposes of Directive 2004/39/EC; furthermore it has not been prepared in accordance with legal requirements designed to promote the independence of investment research and is not subject to any prohibition on dealing ahead of the dissemination of investment research.

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