USA500 reset on sight!
This morning we continue with Eurogroup meetings and comments from the German Bundesbank President and in the afternoon the monetary policy meetings (IRFMP) held in Washington D.C. will be held along with statements from the FED Chairman in Philadelphia and local manufacturing index data, along with US unemployment rates. This data is high impact, along with US home sales, and closing the afternoon will be the 5 year government bond yields which will likely set the tone for the financial day.
Looking at the chart, the S&P500 index (Ticker AT: USA500) has been a very poor performer, degrading its price by -5.11% during the first fortnight. It fractured on 12 April the range barrier that had formed since late March and has proceeded to fall to a low of 5,006.04 points.
Yesterday at the Australian open it closed at around 5,034 points. If today's news is supportive it will help the S&P500 Index to regain some of its value. If we look at the RSI it is currently slightly oversold at 47.50% with its average being 46.23%, so the quarterly corporate average data is not as good as expected and large firms have been reporting massive layoffs to adjust their costs so this may affect the national unemployment rate.
If we look at the shape of the bell, there is currently a triple bell with a median price at 5,200 points, so it would not be surprising if the news goes with the price trying to return to that median, although it is going to be difficult to see this in the short term with such negative economic and unemployment data, which could easily extend its fall to 4,949 points thus closing a bullish cycle that started in February.
Ion Jauregui - AT Analyst
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The information provided does not constitute investment research. The material has not been prepared in accordance with the legal requirements designed to promote the independence of investment research and such should be considered a marketing communication.
All information has been prepared by ActivTrades ("AT"). The information does not contain a record of AT's prices, or an offer of or solicitation for a transaction in any financial instrument. No representation or warranty is given as to the accuracy or completeness of this information.
Any material provided does not have regard to the specific investment objective and financial situation of any person who may receive it. Past performance is not reliable indicator of future performance. AT provides an execution-only service. Consequently, any person acing on the information provided does so at their own risk.
Looking at the chart, the S&P500 index (Ticker AT: USA500) has been a very poor performer, degrading its price by -5.11% during the first fortnight. It fractured on 12 April the range barrier that had formed since late March and has proceeded to fall to a low of 5,006.04 points.
Yesterday at the Australian open it closed at around 5,034 points. If today's news is supportive it will help the S&P500 Index to regain some of its value. If we look at the RSI it is currently slightly oversold at 47.50% with its average being 46.23%, so the quarterly corporate average data is not as good as expected and large firms have been reporting massive layoffs to adjust their costs so this may affect the national unemployment rate.
If we look at the shape of the bell, there is currently a triple bell with a median price at 5,200 points, so it would not be surprising if the news goes with the price trying to return to that median, although it is going to be difficult to see this in the short term with such negative economic and unemployment data, which could easily extend its fall to 4,949 points thus closing a bullish cycle that started in February.
Ion Jauregui - AT Analyst
*******************************************************************************************
The information provided does not constitute investment research. The material has not been prepared in accordance with the legal requirements designed to promote the independence of investment research and such should be considered a marketing communication.
All information has been prepared by ActivTrades ("AT"). The information does not contain a record of AT's prices, or an offer of or solicitation for a transaction in any financial instrument. No representation or warranty is given as to the accuracy or completeness of this information.
Any material provided does not have regard to the specific investment objective and financial situation of any person who may receive it. Past performance is not reliable indicator of future performance. AT provides an execution-only service. Consequently, any person acing on the information provided does so at their own risk.
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