The recent data shows that S&P 500 has been celebrating one good day after another for the past week. The bull rallies seem to be in control for today as well, October 17th, 2019. The market opened at 3,000 level and has made a daily high of 3,007 thus far. This marks a significant breakout of the 3000 level that was challenged but wasn’t sustained yesterday. The underlying reasons, according to the analysts, include the latest developments of Brexit that have brought the two parties (UK and EU) at an agreement, the optimism regarding U.S – China negotiations that have eased off the tension, the ever-rising expectations for an imminent rate cut by the end of the year, and the oversold market conditions at large.
Traders Must Be Cautious Of The Upward Rallies
The S&P 500 index is currently trading at 2,997.62 level. While the market has passed through the previously highlighted as crucial, 3,000 level, the financial experts are still skeptic about the sustainability of the breakout. Owing to the index trading slightly below 3,000 level again, it has been recommended to move with caution in the supposed bullish market.
Despite a further gain of 0.26%, analysts agree that a double top is still evident around the 3,020 level. As long as this relatively strong resistance is not sustainably broken, traders should avoid overcommitting to the upward rallies.
Individual Stocks Of Interest For Thursday
In the individual stocks of interest, Dover Corp has been highlighted trading as high as 7.2%. The overall gain for Dover Corp (year-to-date) was reported at a remarkable 44.8%. Dover Corp has been labeled as the star performer of the S&P 500 index for today. International Business Machines Corp (IBM), on the other hand, has suffered from the worst performance for the day. It is currently trading 5.5% lower while the overall loss (year-to-date) was reported at 18.1%.
The analysts have also recommended to watch Textron, and United Rentals stocks on Thursday, October 17, 2019. The S&P 500 index depicts Textron to be currently trading 4.0% low while the United Rentals has experienced a gain of 6.6% for the day. These have been labeled as the individual stocks of interest for traders of the S&P 500 index.
Forty minutes from now (19:00 GMT +1), two of the voting members of FOMC (Federal Open Market Committee), Mr. Charles Evans (president federal reserve bank Chicago), and Ms. Michelle Bowman (federal reserve board’s governor) are expected to deliver a speech. The investors are recommended to keep an eye and look for hints at the U.S economic performance in general which can be expected to cast an impact on the S&P 500 index in the short and long term.