Current trend

The S&P 500 index cannot break the resistance level of 7/8 Murrey or 2841.8 and continued to decline. Many stock exchanges were supported by the news on the devaluation of the lira: the Central Bank of Turkey pledged to provide liquidity to the market, which provoked a decline in the American currency against the lira for the first time in several days. In addition, the bank decreased the reserve rate for commercial banks, mitigated the requirements for the security it received from the country's banks in money market transactions, and increased almost threefold the amount of permissible borrowing in lira under foreign currency assets.

On the other hand, relations between the US and Turkey continue to deteriorate after the adoption of trade duties. Yesterday, Ankara introduced additional fees for American imports: tobacco, alcohol, and cars. The fall of the instrument is likely to continue, it is also necessary to take into account the fact of strengthening the US currency, which also has a negative impact on the stock market.

As for economic news today, further reports are forecasted for US companies, such as Cisco and NetApp will be released.

Support and resistance

Stochastic is at the level of 22 points and does not give signals for opening positions.

Resistance levels: 2832.0, 2841.8.

Support levels: 2822.3, 2812.5.

Trading tips

Short positions can be opened after the breakdown of the level 2822.3 with the target at 2812.5 and the stop loss 2822.3.

S&P500 index of the American stock exchange

BuySellSpread
2927.4292254

Scenario

TimeframeWeekly
RecommendationsSELL STOP
Entry Point2821.0
Take Profit2812.5
Stop Loss2822.3
Support levels2812.5, 2822.3, 2832.0, 2841.8
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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