SPX has started this year very optimistically showing newer records and higher-highs and still more higher points to come. Unbelievabale isn't it? Despite rumors of the US is one step away from an economic recession.
US Non-farm Payrolls and unemployment rates are at the 50yr lowest rate, however the economy has show some interesting numbers.
- US-companies show the lowest net income
- Manufacturing PMI is showing weak performance of the last 2 years
- US quarterly growth is down by 2%
- US Bonds are still in the negative yields
All of the above display difficult times in the US and Global economy.
September, as a matter of fact, shows positive rates in exchanges, however upcoming Brexit may also turn markets upside down.
From the technical view the price has tested the 2940 and bounced back to test the 2826 to gain power and jump back, or will it?
Nevertheless upcoming supports for SP500 are 2850-2800, 2745 and 2700. If the FED approves another rate cut which Trump is eager to get, and there are improvements in US-China negotiations regarding the "trade war" they have conduceted, the SPX will hop to 3000 and higher. On other hands if all remains "as is" we shall see a regression of the trend and the price to test support after support and plummet to 2700, especially by the end of September.
Support 1 - 2850
Support 2 - 2800
Resistance 1 - 2940
Resistance 2 - 3000
Good luck everyone!
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