Current trend 

With the opening of the Asian session, S&P 500 index is trading near the support level of 2656.3 (Murrey [0/8]).

The reporting of companies put major pressure on the market. For instance, Amazon shares lost about 8% after the publication of a preliminary forecast for sales for Q4 2018, according to which the company expects revenue growth of only 12-18% against 29-43% a quarter earlier.

Macroeconomic statistics, in turn, continues to show a positive trend. According to preliminary data on GDP, the US economy added 3.5% in Q3 2018, so the Fed will continue to raise interest rates, despite criticism from President Donald Trump. In the trade war between the United States and China, both sides are not going to come to a common agreement.

The Italian crisis continues to gain momentum: the spread between yields on bonds of Germany and Italy increases, creating a threat to the banking sector. It also became known that the European Commission officially rejected the draft budget of Italy for 2019 and gave the country's authorities three weeks to finalize the plan.

Today, the data on personal spending and income will be published in the United States.

Support and resistance

Stochastic is at 72 points and does not provide a signal for the opening of positions.

Resistance levels: 2695.3, 2714.8.

Support levels: 2656.3, 2636.7.

Trading tips

Open short positions after the breakdown of the support level of 2656.3 with take profit 2636.7 and stop loss at 2670.0.

S&P500 index of the American stock exchange

BuySellSpread
2655.32649.756

Scenario

TimeframeDay's Range
RecommendationsSELL STOP
Entry Point2655.0
Take Profit2636.7
Stop Loss2670.0
Support levels2636.7, 2656.3, 2695.3, 2714.8
SPX: general review

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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