Last week, the S&P 500 index was trading in the green zone and grew by around 1.5%. Now the price is below the important resistance level of 8/8 Murray or 2773.4. If the instrument cannot consolidate above it in the near future, it will decrease to the level of 2753.9 or 6/8 Murray. IT sector and shares of companies engaged in the development sector were leading. Horton strengthened by +4.12%, while its competitor increased by 2.97%. Italy's debt problems do not bother investors, and some ECB representatives say the regulator is ready to curtail the monetary stimulus of the economy, as a result, USD has slightly decreased, which affected the stock market positively.
Trade disputes problems and the problems of protectionism policies became less important, but if the conflict escalates, the sales can begin, which will cause the S&P 500 to fall.
This week, the traders are focused on Fed’ meeting on interest rates and ECB. The possibility of US interest rate increase is above 70%; in this case, USD will be supported.
Support and resistance
Stochastic is around 98 points and reflects a possibility of a correction.
Resistance levels: 2773.4, 2783.2.
Support levels: 2763.7, 2753.9.
Short positions can be opened below the support level 7/8 or 2760.7 with the target at 2753.9 and stop loss 2773.4.
S&P500 index of the American stock exchange
|Support levels||2753.9, 2763.7, 2773.4, 2783.2|
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