S&P 500 with the opening of trading in Asia continues to gain momentum: the price approached an important resistance level of 2851.6 (Murrey [8/8]). In case of breaking through it and consolidating above it the next target will be the absolute high at 2876.1.
Investors continue to open long positions. Demand is due to good economic data on the labor market, published in the US last week. The unemployment rate decreased and amounted to 3.9%. Average Hourly Earnings increased to 0.3% MoM, though YoY the indicator remained at the level of 2.7%.
As for the trade war between the US and China, the situation is still unresolved. According to preliminary data, Beijing is preparing a response regarding American goods worth USD 60 billion after the US side issued a warning to increase the tariffs on Chinese goods totaling USD 200 billion to 25%.
Also this week, quarterly reports of US companies Walt Disney and Twenty-First Century Fox will be presented.
Support and resistance
Stochastic is at 65 points and does not provide a signal for the opening of positions.
Resistance levels: 2851.6, 2876.1.
Support levels: 2846.1, 2841.8.
Open long positions after the breakout of 2851.6 with take profit at 2876.1 and stop loss at 2846.1.
S&P500 index of the American stock exchange
|Support levels||2841.8, 2846.1, 2851.6, 2876.1|
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