The S&P 500 broad spectrum index is trading near the important resistance level of 4/8 Murrey or 2734.4. If the asset can consolidate higher, then the next target will be the level of 2753.9. The instrument is under pressure of the fall in stocks of large American companies. Thus, the leading bank Goldman Sachs lost more than 6% of its market capitalization after the news from Malaysia. The government of the country intends to request the company to return all fees received for the organization of billions of transactions in the credit market. Whether the parties will be able to reach an agreement is unclear but Goldman Sachs is already incurring losses. The second negative factor for the index is the decrease in Apple shares after the news that the management intends to significantly reduce the supply of smartphone components from third-party manufacturers. The sales may fall below forecasts.
On the other hand, the market may be supported by the news that the US plans to resume negotiations on trade duties with China. According to preliminary data, Washington would like to receive concrete proposals to resolve the controversial issue, and in November, at the G20 summit, a meeting of the leaders of both states is scheduled.
As for the key news, today the US Consumer Price Index will be released.
Support and resistance
Stochastic is at the level of 52 points and does not give signals to open trading positions.
Resistance levels: 2753.9, 2773.4.
Support levels: 2726.2, 2714.8.
Short positions can be opened from the level of 2773.4 with the target at 2726.2 and stop loss 2773.4.
S&P500 index of the American stock exchange
|Support levels||2714.8, 2726.2, 2753.9, 2773.4|
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