S&P 500 (US500)
The S&P 500 as well as Nasdaq 100 closed with modest gains in yesterday's session after the publication of the inflation data from the US. The US consumer price report showed an increase in August, but the core CPI eased, which provided some support for stocks. Stock movers included JB Hunt Transport Services, Moderna, Morgan Stanley, Westrock, and Ford Motor while commercial real estate brokerage stocks and airline stocks faced pressure. Apple faced a decline after China flagged security incidents with its iPhones causing a decline on the share price of the tech giant of around 7% in the last week.
‘The market is anticipating a pause on the FED’s next meeting on the 20th of September while this stance is expected to remain unchanged until June of next year. On the other hand this is up for debate since inflation data of the following months would most certainly have an effect on these probabilities for the medium to long term outlook in regards to the monetary policy.’ says Antreas Themistokleous, market analyst at Exness
According to technical analysis the level of the index is trading in a dynamic area on the chart between the 50 and 100 day moving averages. The current level is testing the resistance of the 50 day moving average and is also just above the 23.6% of the daily Fibonacci retracement level. The Stochastic oscillator is not in any extreme levels of overbought or oversold indicating that the direction in the short term outlook could move to either way. For the time being the fact that the faster moving average (50 days) is trading above the slower one (100 days) is a validation of the overall bullish trend.
In case the reading moves to the downside then the first point of major technical support could potentially lay around the area of the 23.6% of the Fibonacci retracement level and the 100 day moving average.
The S&P 500 as well as Nasdaq 100 closed with modest gains in yesterday's session after the publication of the inflation data from the US. The US consumer price report showed an increase in August, but the core CPI eased, which provided some support for stocks. Stock movers included JB Hunt Transport Services, Moderna, Morgan Stanley, Westrock, and Ford Motor while commercial real estate brokerage stocks and airline stocks faced pressure. Apple faced a decline after China flagged security incidents with its iPhones causing a decline on the share price of the tech giant of around 7% in the last week.
‘The market is anticipating a pause on the FED’s next meeting on the 20th of September while this stance is expected to remain unchanged until June of next year. On the other hand this is up for debate since inflation data of the following months would most certainly have an effect on these probabilities for the medium to long term outlook in regards to the monetary policy.’ says Antreas Themistokleous, market analyst at Exness
According to technical analysis the level of the index is trading in a dynamic area on the chart between the 50 and 100 day moving averages. The current level is testing the resistance of the 50 day moving average and is also just above the 23.6% of the daily Fibonacci retracement level. The Stochastic oscillator is not in any extreme levels of overbought or oversold indicating that the direction in the short term outlook could move to either way. For the time being the fact that the faster moving average (50 days) is trading above the slower one (100 days) is a validation of the overall bullish trend.
In case the reading moves to the downside then the first point of major technical support could potentially lay around the area of the 23.6% of the Fibonacci retracement level and the 100 day moving average.