S&P 500 index continues trading in the green area since the beginning of a new week.
The nearest important support level is at 2766.7. If the price can overcome it, then the next target will be at the level of 2812.5 (Murrey [8/8]).
Demand is caused by positive macroeconomic statistics in the United States. Nonfarm Payrolls index amounted to 250K. Average Hourly Earnings increased as well, amounting to 3.1%. With such strong indicators, there is no doubt that the Fed will continue to raise the interest rate, which means that the yield on bonds will rise, and in the stock market, on the contrary, will decline.
The US Midterm Congressional elections will take place this week. The possible victory of the Democrats will impede the implementation of the plans of President Donald Trump, which may adversely affect US securities. Also, this week, companies will continue to issue their financial reports. Walt Disney financials will be released on Thursday.
Support and resistance
Stochastic is at the level of 98 points and indicates the possible correction.
Resistance levels: 2766.7, 2812.5.
Support levels: 2695.3, 2656.3.
Long positions may be opened from the current level with take profit at 2766.7 and stop loss at 2720.0.
S&P500 index of the American stock exchange
|Support levels||2656.3, 2695.3, 2766.7, 2812.5|
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