The S&P 500 index is trading in a narrow channel between the levels of 2636.7 and 2617.2.
According to the latest statistics, the US economy continues growing. The Trade Balance deficit substantially shrank due to a decline in imports that fell after the Trump administration introduced import tariffs. The labour market is strengthening as well. Yesterday’s data on the number of Initial Jobless Claims came out stronger than expected at 211 thousand. Today extra attention needs to be paid to data on the Non-farm Payrolls from the US.
In addition, the index was pressured by weak earnings reports from some companies. Shares of insurance giant AIG fell by around 5% amid a decline in revenues. Negative dynamics was also seen in shares of some companies from the pharmaceutical sector due to falling prices on some of the drugs.
In general, the fundamental picture remains negative and the instrument might continue its fall.
Support and resistance
The Stochastic is in the overbought zone, indicating the possibility of a decline.
Short positions can be opened below the support level of 2617.2 (2/8 Murray).
Support levels: 2617.2, 2602.0.
Resistance levels: 2636.7, 2656.3.
Short positions can be opened below the level of 2617.2 with the target at 2602.0 and stop-loss at 2636.7.
S&P500 index of the American stock exchange
|Support levels||2602.0, 2617.2, 2636.7, 2656.3|
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