Current trend

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.

Trading tips

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

BuySellSpread
2744.22738.656

Scenario

TimeframeDay's Range
RecommendationsSELL
Entry Point2880.1
Take Profit2871.1
Stop Loss2883.0
Support levels2871.1, 2880.9, 2890.6, 2910.2
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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