Current trend

The S&P 500 index is trading near an important resistance level of 8/8 Murray (2734.4), and if we see a breakout, then the next target will be 2753.9.

On the other hand, the yield of 10-year treasury bonds has overcome a threshold of 3%, which may entail a large-scale correction in the stock market. If the dividend yield also falls below 2-year debt securities, then shares as risk-weighted investments will completely lose appeal to large players such as pension funds and insurance companies.

The second negative factor for the market is the unresolved issue regarding the policy of protectionism between the US and China. Market participants hope that the meeting of vice premiers in Washington will be able to move the issue from the dead spot.

Today, the major releases are initial jobless claims and the production index in the United States.

Support and resistance

Stochastic is at the level of 92 and signals a possible correction.

Resistance levels: 2734.4, 2753.9.

Support levels: 2714.8, 2695.3.

Trading tips

Short positions can be opened above the resistance level of 8/8 Murray (2734.4) with a stop loss at 2753.9 and take profit at 2695.3.

S&P500 index of the American stock exchange

BuySellSpread
2931.32925.954

Scenario

TimeframeDay's Range
RecommendationsSELL LIMIT
Entry Point2734.4
Take Profit2695.3
Stop Loss2753.9
Support levels2695.3, 2714.8, 2734.4, 2753.9
SPX: general analysis

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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