Tuesday, October 8th, 2019 failed to favor the S&P 500 index. The market opened at 2,920.40. While most of the day was spent below the opening level, it managed to rally up to 2,925.10 in the last quarter before the day-close. However, the high was unsustainable and the market rallied back down almost immediately and closed at the 2,892.82 level.
Technical Levels To Watch
As per the technical analysis for Wednesday, October 9th, 2019, the level 2,909 has been highlighted as a crucial target. If the index manages to break above this level, analysts are expecting 2,945.75 level in sight. In an event that S&P 500 recovers above 2,945.75, it is likely to meet a strong resistance at 2,959.50 level. This will potentially resume the short-term upward trend that was predicted after the strong recovery on last Friday to the 2,950.50 level.
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On the downside, however, if the index opened lower and broke through the support located at 2,888.25 level, it is likely that it will continue the downward movement to 2,877.5 level. Below this, a strong support is currently located for S&P 500 index at the 2,855 level.
Technical analysis experts have reported 2,995 and 2,855 to be the range for S&P 500 in which it is likely to isolate. If either of the strong resistance (2,995) or strong support (2,855) is compromised, an intermediary bullish or bearish trend will be established respectively. The targets for the intermediary bullish trend are located at 3,025, 3,050, and 3,095 levels. On the downside, if the support is broken, 2,811 and 2,777 levels can be expected.
Potential Market Movers For Today
All in all, Wednesday can be anticipated as an interesting day for the investors with multiple macroeconomic events lined up to play their roles as market movers. The U.S – China trade negotiations have been mirroring their impact on the global financial markets for a few days. Other than that, however, the FOMC meeting minutes to be released at 18:00 GMT is likely to stir up the volatility in the market. Fed’s chairman, Mr. Powell, may hint at the possibility of a third rate cut for the year by the end of the month that has major implications for the U.S economy in the short and long run.
The U.S crude oil inventories report is to be released at 14:30 on Wednesday, October 9th, 2019. The S&P 500 index has a history of responding to such reports. The investors are, therefore, recommended to factor such data in their short and long term strategies.