FXOpen
On Friday, at 15:30 GMT+3, the Core PCE Price Index values will be released – an economic indicator to which the Federal Reserve pays special attention when assessing inflation levels in the US. This event is likely to cause a surge of news in the financial markets, and its anticipation will influence sentiments throughout the week.
On Monday morning, the S&P 500 Index (US SPX 500 mini on FXOpen) fell to 5465 points after a historical record above 5500 points was set on June 20th. The decline was contributed by Friday’s report from the National Association of Realtors, which showed a drop in existing home sales in May compared to the previous month.
Technical analysis of the daily chart of the S&P 500 Index (US SPX 500 mini on FXOpen) shows that:
→ the price is in a large upward trend that began last year;
→ the price is near the upper boundary of this channel;
→ the price has fallen below the psychological level of 5500;
→ the price is still in the June upward trend (shown in green);
→ the RSI indicator points to some market overbought conditions.
Given these facts, it is reasonable to assume that the S&P 500 Index (US SPX 500 mini on FXOpen) is in a vulnerable position for a pullback from the resistance block formed by the psychological level of 5500 and the upper boundary of the channel. The June upward trend may be broken.
Moreover, a possible correction might take on a threatening character if Friday’s news shows that US inflation is not slowing down – which would strengthen market participants’ belief that the period of high rates will last longer than expected.
Trade global index CFDs with zero commission and tight spreads (additional fees may apply). Open your FXOpen account now or learn more about trading index CFDs with FXOpen.
This article represents the opinion of the Companies operating under the FXOpen brand only. It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.
Stay ahead of the market!
Subscribe now to our mailing list and receive the latest market news and insights delivered directly to your inbox.
Latest articles
EUR/JPY Pulls Back From Record High
As the chart shows, the exchange rate rose above ¥185.00 per euro for the first time ever earlier this week. Today, however, a modest pullback is visible, with the Japanese yen strengthening against the euro.
Fundamentally, this move has
US Delays Vote On Key Cryptocurrency Market Bill
Yesterday, the US Senate postponed a vote on a bill aimed at defining the structure of the cryptocurrency market. The delay followed the withdrawal of support by one of the industry’s leading players, the Coinbase exchange.
Coinbase CEO Brian
Microsoft (MSFT) Shares Fall Below $460
As the Microsoft (MSFT) share chart shows:
→ yesterday’s candle closed below $460 — the lowest level since early June last year;
→ the decline from the all-time high near $550 has exceeded 16%.
Why MSFT Shares Are Falling
The downward move