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.
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
|Support levels||2393.8, 2421.9, 2500.0, 2528.0|
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