Yesterday, the US stock market showed a significant decline over the past few months.
The S&P 500 index fell by 3.2% and continues to decline. One of the reasons for the decline was the fact that many market participants began to invest more in government bonds because of the increase in their profitability compared to shares of American companies. According to analysts' comments, the growth in profitability was caused by the aggressive increase of interest rates by the Fed, which was criticized by US President Donald Trump.
Another factor that affects the stock market negatively is Hurricane Michael, which broke out in the southern states and greatly complicated the work of the oil sector. According to preliminary estimates by experts, the damage from the storm may amount to more than 30 billion dollars. This includes damaged properties, as well as businesses and lost profits.
Support and resistance
Stochastic is at the level of 12 points and indicates the possible correction.
Resistance levels: 2766.7, 2779.2.
Support levels: 2734.4, 2730.1.
Short positions may be opened after the breakdown of the support level of 2734.4 with take profit at 2730.1 and stop loss at 2738.0.
S&P500 index of the American stock exchange
|Support levels||2730.1, 2734.4, 2766.7, 2779.2|
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