SPX: general analysis
23 January 2019, 09:45
| Scenario | |
|---|---|
| Timeframe | Intraday |
| Recommendation | SELL STOP |
| Entry Point | 2616.0 |
| Take Profit | 2578.1 |
| Stop Loss | 2626.5 |
| Key Levels | 2597.7, 2617.2, 2656.3, 2682.8 |
Current trend
The US broad spectrum index S&P 500 continues to decline. The closest support level is 6/8 Murrey or 2617.2.
The stock market is under pressure of the news that China will be able to reduce trade imbalances no earlier than 2024, although the US side insists on earlier terms. The second negative point for negotiations is the lack of clear agreements on intellectual property: the next meeting is scheduled for January 31.
As for the domestic policy of the United States, the Shutdown has been going on for the 31st day, which, according to preliminary estimates by economists, cost the budget $5.7 billion: in fact, Trump requested that amount to build a wall on the border with Mexico. Many economists believe that the loss of GDP may be more than 0.5% since the damage caused to industry and consumers continues to grow. Due to the suspension of the work of a number of government agencies, small businesses cannot obtain the necessary approvals, and corporations cannot raise additional capital through an IPO since the securities commission also does not work partially. Against this background, the Association of Entrepreneurs urged Congress and Trump to resolve issues as soon as possible and resume the full work of government agencies.
Support and resistance
Stochastic is at 25 points and does not give signals to open the positions.
Resistance levels: 2656.3, 2682.8.
Support levels: 2617.2, 2597.7.
Trading tips
Short positions can be opened after the breakdown of the level of 2617.2 with the target at 2578.1 and stop loss at 2626.5.
The US broad spectrum index S&P 500 continues to decline. The closest support level is 6/8 Murrey or 2617.2.
The stock market is under pressure of the news that China will be able to reduce trade imbalances no earlier than 2024, although the US side insists on earlier terms. The second negative point for negotiations is the lack of clear agreements on intellectual property: the next meeting is scheduled for January 31.
As for the domestic policy of the United States, the Shutdown has been going on for the 31st day, which, according to preliminary estimates by economists, cost the budget $5.7 billion: in fact, Trump requested that amount to build a wall on the border with Mexico. Many economists believe that the loss of GDP may be more than 0.5% since the damage caused to industry and consumers continues to grow. Due to the suspension of the work of a number of government agencies, small businesses cannot obtain the necessary approvals, and corporations cannot raise additional capital through an IPO since the securities commission also does not work partially. Against this background, the Association of Entrepreneurs urged Congress and Trump to resolve issues as soon as possible and resume the full work of government agencies.
Support and resistance
Stochastic is at 25 points and does not give signals to open the positions.
Resistance levels: 2656.3, 2682.8.
Support levels: 2617.2, 2597.7.
Trading tips
Short positions can be opened after the breakdown of the level of 2617.2 with the target at 2578.1 and stop loss at 2626.5.
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