The S&P 500 is trading near resistance level 2890.6 (Murrey [4/8]). In case of breaking through it and consolidating of the price above it, the next target will be at 2910.2. However, according to analysts, the market is still under pressure from the trade conflict between the US and China. Recently, the US President Donald Trump expressed his willingness to raise duties on Chinese goods for a total of USD 267 billion.
The growth of hourly earnings, published last week, significantly strengthened the expectations of traders regarding the interest rate increase at the next Fed meeting on September 25, which had a negative impact on stock quotes. If the regulator goes to another tightening of monetary policy, then the imbalance will increase, and many currencies of developing countries will continue to fall. For example, since the beginning of the year, the Argentine peso has fallen in price by more than 50%, and the Turkish lira went down by 40%, which carries risks for the world economy.
Today, a number of macroeconomic data will be published in the US: Producer Price Indices and the Fed's "Beige book".
Support and resistance
Stochastic is at the level of 85 points and indicates the possible correction.
Resistance levels: 2890.6, 2910.2.
Support levels: 2880.9, 2871.1.
Short positions may be opened after the breakdown of the local low level of 2880.9 with take profit at 2871.1 and stop loss at 2890.6.
S&P500 index of the American stock exchange
|Support levels||2871.1, 2880.9, 2890.6, 2910.2|
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