S&P 500 continues strengthening. Currently the index is trading around the resistance level of 2734.4 (Murrey [4/8]).
The demand for the asset was caused by restrained comments by Fed Chairman Jerome Powell on the interest rate increase. According to him, the current rate is below the neutral level, and further value will depend on economic indicators. In addition, the recent fall in energy prices could ease inflationary pressure, which the committee is based on when changing monetary policy. Economic news from the United States include the preliminary data on GDP which turned out at the level of expectations of 3.5%, while new home sales fell slightly to 0.544 million compared to the forecast of 0.575 million.
Today, the G20 summit starts and many investors will make their decisions based on its results. The main expected event of the summit is the trade negotiations between the leaders of the US and China. The second important point may be the statements of the American leadership concerning the duties on European cars. US President Donald Trump said earlier that it was necessary to impose a 25% duty on automotive products from the EU to protect General Motors Company from further closure of factories and job cuts.
Support and resistance
Stochastic is at 77 points and does not provide a signal for the opening of new positions.
Resistance levels: 2753.9, 2766.7.
Support levels: 2722.4, 2595.8.
Open short positions after the breakdown of the support level of 2722.4 with take profit at 2595.8 and stop loss at 2734.0.
S&P500 index of the American stock exchange
|Support levels||2595.8, 2722.4, 2753.9, 2766.7|
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