S&P 500 index has been trading with a slight decrease since the beginning of the week. At the moment the instrument is at the level of 2900.4 (Murrey [5/8]).
The main negative factor for the index is the intention of Donald Trump to apply duties on Chinese goods, despite attempts to negotiate. The decision applies to USD 200 billion worth of products in addition to the already applied import duties of 25%. Many large American companies have criticized this decision, believing that this will only cause an increase in prices in the domestic market, and the entire load will pass to the consumer.
A positive moment for the market was a slowdown in consumer prices to 2.7% against 2.8%: a low level of inflationary pressure reduces the likelihood of a more aggressive increase in the interest rate by the Fed. Today, the NY Empire State Manufacturing Index will be published.
Support and resistance
Stochastic is at 45 points and does not provide a signal for the opening of positions.
Resistance levels: 2906.5, 2910.2.
Support levels: 2895.5, 2890.6.
Short positions may be opened after the breakdown of the support level of 2895.5 with take profit at 2890.6 and stop loss at 2902.5.
S&P500 index of the American stock exchange
|Support levels||2890.6, 2895.5, 2906.5, 2910.2|
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