After falling last Friday, the S&P 500 index recovered slightly and is currently trading near the resistance level of 4/8 Murrey or 2890.6. Stock market quotes are under pressure from the growth of bond yields, which exceeded the level of 3.18% for 10-year securities and 3% for 5-year securities. According to experts, the increase in the indicator is due to an increase in the interest rate and economic growth. The dividend yield of the index is 1.6% YoY, which is already less than investments in debt securities, and therefore sales in the stock market may increase.
Friday’s Nonfarm Payrolls release did not reach the forecast of 185K and reached only 134K, partially due to hurricanes in the country. However, the Unemployment Rate also continues to decline, which is a positive signal for the country's economy: in September it reached 3.7% against 3.9% a month earlier. This week the reporting season for US companies will begin.
Support and resistance
Stochastic is at the level of 68 points and does not give signals for opening positions.
Resistance Levels: 2890.6, 2895.5.
Support levels: 2890.9, 2871.1.
Short positions can be opened below the level of 2880.6 with the target at 2871.1 and stop loss at 2883.0.
S&P500 index of the American stock exchange
|Support levels||2871.1, 2880.9, 2890.6, 2910.2|
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