Current trend

S&P 500 index is trading with a slight gap downwards.

The nearest important resistance level is at 2528.2. If the asset can consolidate higher, then the next target will be at 2597.1. However, at the moment, the continuation of the downtrend is more likely.

In 2019, the interest rate is likely to continue to rise, although not as fast as last year, when the Fed raised the rate four times, thereby reducing inflationary pressure in the country, which was a negative factor for the stock market. A negative impact on the market was also exerted by the increase in public debt which was facilitated by the tax reform adopted by President Donald Trump. By the end of the year, the figure reached USD 21.85 trillion, the net issue for 11 months of 2018 was over a trillion dollars, and the year itself ended with the largest budget deficit since 2012 at around USD 779 billion. Today, due to the lack of important macroeconomic news, low volatility is expected in the market.

Support and resistance

Stochastic is at 32 points and does not provide a signal for the opening of positions.

Resistance levels: 2500.0, 2528.0.

Support levels: 2421.9, 2393.8.

Trading tips

Short positions may be opened from the resistance level of 2500.0 with take profit at 2421.9 and stop loss at 2528.0.

S&P500 index of the American stock exchange

BuySellSpread
2909.92904.356

Scenario

TimeframeWeekly
RecommendationsSELL LIMIT
Entry Point2500.0
Take Profit2421.9
Stop Loss2528.0
Support levels2393.8, 2421.9, 2500.0, 2528.0
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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