With the opening of the Asian session, S&P 500 won back its yesterday’s losses and is now trading at 2740.4.
However, sales may resume, as economists believe, and there are several reasons for this. First, the yield on 10-year Treasury bonds, which currently stands at about 3.10%, will continue to grow due to the tightening of the Fed’s monetary policy. The second reason is the deterioration of relations between the United States and China because of the protective duties. In addition, China continues to consider Taiwan its province, which can be returned by force. The United States, in their turn, continue to help the island, supplying weapons. Another reason for the resumption of sales could be the Italian crisis. Moody’s has downgraded Italy's rating to Baa3. According to economists, the government of the country does not have an integrated approach to overcome the crisis and the situation will only get worse. Sales, which dominate at the Italian stock exchanges, have a negative impact on other markets.
Support and resistance
Stochastic is at 65 points and does not provide a signal for the opening of positions.
Resistance levels: 2773.4, 2793.4.
Support levels: 2734.4, 2695.3.
Short positions may be opened from the resistance level of 2773.4 with take profit at 2734.4 and stop loss at 2793.4.
S&P500 index of the American stock exchange
|Support levels||2695.3, 2734.4, 2773.4, 2793.4|
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