Since today’s opening of the European session, the USD strengthened and stock markets fell. S&P500 lost almost 10 points.
The uncertainty regarding the final date of the interest rate hike in the US and the Chinese economy slowdown worry investors and put pressure on world stock indices. At the same time, attempts by the Chinese government aimed at stabilising the economy are not sufficient and tensions are going to keep growing towards the Fed meeting on 16-17 September.
The Yuan devaluation and the continuous fall of the Chinese market, on the other hand, may force the Fed to delay the interest rate increase, which would support the American stock market. If the Fed delays the increase, a recent sharp markets fall is going to be corrected.
Support and resistance
A movement in the world stock indices is very similar lately. A triangle, in which the indices are trading, is going to narrowing towards 17 September.
On the 4-hour chart, the price of S&P500 remains between the lower border of the triangle and resistance levels at 1995.0 (ЕМА144), 2014.0 (ЕМА200). Most likely, the price will stay between 1910.0 (September lows) and 2014.0 (ЕМА200) until 17 September.
OsMA and Stochastic on the 4-hour and daily charts give opposite signals.
Support levels: 1934.0, 1910.0, 1890.0.
Resistance levels: 1957.0, 1995.0, 2014.0.
Pending sell orders can be placed at the levels of 1990.0, 1970.0 with targets at 1950.0, 1940.0, 1930.0, 1910.0 and stop-loss at 2025.0.
Pending buy orders can be placed at the levels of 1910.0, 1920.0, 1930.0, with targets at 1960.0, 1970.0, 1990.0 and stop-loss at 1880.0.