Current trend 

S&P index in the H4 chart reached the level of 2779.2. If it is broken out and the price consolidates above it, the next target will be 2773.4 (Murray [8/8]).

Today, on the eve of the Fed meeting, investors do not expect significant movements in the market. Experts expect the interest rate to be raised by 0.25 points. The comments of the new head of administration, Jerome Powell, regarding the current economic situation and the monetary policy course are also of great importance. Apparently, the regulator will continue to sell treasury bonds, which will soon expire. At the moment, the Fed has bonds worth about USD 2.4 trillion on the balance sheet.

The experts assess the situation in the economy as positive and assume that GDP will grow by 4.6% in Q2 2018, and the unemployment rate will continue to decline, having a positive impact on the welfare level of citizens. Generally, if the Fed will tighten monetary policy too much, this will cause an increase in bond yields and lead to a sell-off in the stock market.

Support and resistance

Stochastic is at 35 points and does not provide a clear signal for transactions opening.

Resistance levels: 2793.0, 2800.0.

Support levels: 2779.2, 2773.4.

Trading tips

Open short positions after the breakdown of the support level of 2779.2 with take-profit 2773.4 and stop-loss at 2782.0.

S&P500 index of the American stock exchange

BuySellSpread
2794.12793.74

Scenario

TimeframeDay's Range
RecommendationsSELL STOP
Entry Point2779.0
Take Profit2773.4
Stop Loss2782.0
Support levels2773.4, 2779.2, 2793.0, 2800.0
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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