SPX: general analysis
14 August 2018, 11:16
| Scenario | |
|---|---|
| Timeframe | Weekly |
| Recommendation | SELL STOP |
| Entry Point | 2823.0 |
| Take Profit | 2812.5 |
| Stop Loss | 2832.0 |
| Key Levels | 2812.5, 2822.3, 2832.0, 2841.8 |
Current trend
At the beginning of the trading week, the S&P 500 index fell after it failed to update the historic high. At the moment, the price is near the resistance level 5/8 Murrey or 2832.0.
The market is under pressure of the trade war: by the end of August, the US can introduce new taxes against Chinese goods. According to President Trump, many foreign countries use unscrupulous monetary policy, understating the national rate and thereby providing a competitive advantage to their goods, which leads to an increase in the trade deficit in America. Trade taxes are one of the measures to reduce the deficit. On the other hand, according to analysts, Chinese exporters can increase prices for their goods in order to compensate for defensive duties, and in this case, this difference will be compensated by American consumers who will still be forced to buy goods from China.
The second global risk for the stock market remains the Turkish devaluation: on Monday the lira lost more than 7%. Many economists believe that a number of European banks have been heavily involved in the local financial market, and in case of further deterioration of the situation they can incur significant losses, so the debt to foreign companies is about 148 billion, and it is unclear how it will be covered.
This week, the traders expect data on Retail Sales and Industrial Production.
Support and resistance
Stochastic is at 24 points and does not give signals for opening positions.
Resistance levels: 2832.0, 2841.8.
Support levels: 2822.3, 2812.5.
Trading tips
Short positions can be opened after the breakdown of the level 2822.3 with the target at 2812.5 and stop loss 2832.0.
At the beginning of the trading week, the S&P 500 index fell after it failed to update the historic high. At the moment, the price is near the resistance level 5/8 Murrey or 2832.0.
The market is under pressure of the trade war: by the end of August, the US can introduce new taxes against Chinese goods. According to President Trump, many foreign countries use unscrupulous monetary policy, understating the national rate and thereby providing a competitive advantage to their goods, which leads to an increase in the trade deficit in America. Trade taxes are one of the measures to reduce the deficit. On the other hand, according to analysts, Chinese exporters can increase prices for their goods in order to compensate for defensive duties, and in this case, this difference will be compensated by American consumers who will still be forced to buy goods from China.
The second global risk for the stock market remains the Turkish devaluation: on Monday the lira lost more than 7%. Many economists believe that a number of European banks have been heavily involved in the local financial market, and in case of further deterioration of the situation they can incur significant losses, so the debt to foreign companies is about 148 billion, and it is unclear how it will be covered.
This week, the traders expect data on Retail Sales and Industrial Production.
Support and resistance
Stochastic is at 24 points and does not give signals for opening positions.
Resistance levels: 2832.0, 2841.8.
Support levels: 2822.3, 2812.5.
Trading tips
Short positions can be opened after the breakdown of the level 2822.3 with the target at 2812.5 and stop loss 2832.0.
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