The trading session on October 9th, 2019 (Wednesday) presented back and forth oscillations in the S&P 500 index with a slightly stronger proclivity for the upward pattern. Considering the ongoing macroeconomic events including the uncertainty revolving the U.S – China trade talks and the FOMC meeting minutes released on Wednesday, the financial experts thought of the SPX’s performance as rather impressive. Since the market dipped sharply towards the end of Tuesday, it invoked confidence in the investors as the index recovered from the losses during the trading session on Wednesday.
Technical Levels To Watch
The index opened at 2,918.55 on October 10th, 2019. Only a couple hours into the trading session, the market has hit a high of 2,947.87. Currently trading at 2,939.24, the technical experts have suggested that the index is likely to oscillate between the range of 2,950 and 2,910 for today. A relatively stronger resistance located at 2,940 level has, however, been broken by the index that has opened the door for it to rally to the 3,000 level, according to the financial experts.
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The macroeconomic events such as that of U.S – China trade talks that are currently going on are acting as a barrier to any major movement in the S&P 500 index for now. It has been forecasted that investors are rather wary of being too active during such times of uncertainty. A clearer pattern in the S&P 500 index is likely to appear once the trade negotiations are over and the outcome is evident.
The S&P 500 chart analysis highlights that the index has been oscillating between the 50-day and 200-day EMA. Generally, trading within such a range is construed as “Chicken Market”, AKA an index that is reluctant in exhibiting a clear bullish or bearish trend. As long as the uncertainty circling the trade negotiations isn’t settled, the market is expected to keep oscillating back and forth, as per the technical analysis specialists. In other words, while the volatility may be higher for now, a clearer direction and the market intention will be evident once the clouds of uncertainty pass.
Strong Resistance At 2,940 Level Has Been Broken
In an event that the 200-day EMA is compromised, a sharp decline to 2,800 level is in sight. Provided that the index doesn’t find support at 2,800, experts have opinionated that a further drop to 2,700 can also be anticipated. A strong resistance on the upside was located at 2,940 level. While the index has passed through it already earlier today, the bullish trend will only be resumed if the market closes for the day above this resistance.