CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
Open account
☰
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
Open account
✖

SPX 500 Index The Resumption of Previous Up Trend

Article By: ,  Financial Analyst
July 8, 2020 11:21 PM

S&P 500 Index (Short Term): The Resumption of Previous Up Trend

On Wednesday, the S&P 500 gained 24 points (+0.78%) to 3169 despite potential consequences of spiking coronavirus cases across the country. The number of COVID-19 cases in the U.S. surpassed 3 million, according to the Center for Systems Science and Engineering (CSSE) at Johns Hopkins University. Besides, the new cases added 62,000 yesterday, marking the highest increase level in a single day.

However, market sentiment was lifted by comments by St. Louis Federal Reserve Bank President James Bullard that the U.S. jobless rate would likely decline to 7% by the year-end.

Investors should focus on Initial Jobless Claims for the week ended July 4 (a decline to 1.375 million expected) and Wholesale Inventories for May (final reading of -1.2% on month expected).

From a technical point of view, the S&P 500 index broke above the triangle pattern and filled the gap occurred on June 11 on the daily chart.

The 50-day moving average remains on a positive slope, suggesting the bullish outlook for the prices.

The RSI also indicated a positive reversal signal, which provides evidence to resume the up trend.

Bullish readers should consider the nearest support level at 3000 (the previous low), while the resistance levels would be located at 3231 (the previous high) and 3330 (the gap created on February 24) respectively.


Source: TradingView, GAIN Capital

StoneX Financial Ltd (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.

No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.

For further details see our full non-independent research disclaimer and quarterly summary.

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. CFD and Forex Trading are leveraged products and your capital is at risk. They may not be suitable for everyone. Please ensure you fully understand the risks involved by reading our full risk warning.

City Index is a trading name of StoneX Financial Ltd. Head and Registered Office: 1st Floor, Moor House, 120 London Wall, London, EC2Y 5ET. StoneX Financial Ltd is a company registered in England and Wales, number: 05616586. Authorised and regulated by the Financial Conduct Authority. FCA Register Number: 446717.

City Index is a trademark of StoneX Financial Ltd.

The information on this website is not targeted at the general public of any particular country. It is not intended for distribution to residents in any country where such distribution or use would contravene any local law or regulatory requirement.

© City Index 2024