Current trend

The S&P 500 index is trading near the important resistance level of 8/8 Murrey or 2812.5. After the consolidation above it, growth to the level of 2851.6 is possible.

Yesterday, the Fed meeting on monetary policy was held. Most of the committee members decided to leave the interest rate unchanged but it became known that in the coming months it will gradually grow. The probability of a rate hike in December is estimated above 75%, and in March – no more than 50%. The regulator also noted that the economy continued to grow: unemployment was falling, and consumption was growing.

In recent elections, Democrats won a majority in the House of Representatives, and Republicans got the majority in the Senate. Experts believe that Trump may face a number of problems in the near future, as political disagreements may increase due to the fiscal stimulus and the adoption of a new budget deficit. By March, the country should increase the national debt ceiling, otherwise, a technical default will become inevitable. In addition, in November, investors are waiting for the G20 meeting, where the trade duties between Washington and Beijing will be discussed.

Today Consumer Price Index and Wholesale Inventories releases will be published.

Support and resistance

Stochastic is at the level of 52 points and does not give signals for opening positions.

Resistance levels: 2812.5, 2851.6.

Support levels: 2794.2, 2773.4.

Trading tips

Long positions can be opened after the breakout of the level of 2812.5 with the target at 2851.6 and stop loss at 2794.2.

S&P500 index of the American stock exchange

BuySellSpread
2744.22738.656

Scenario

TimeframeDay's Range
RecommendationsBUY STOP
Entry Point2813.0
Take Profit2851.6
Stop Loss2794.2
Support levels2773.4, 2794.2, 2812.5, 2851.6
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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