Re: Tifia Daily Market Analytics
S&P 500: on the eve of the Fed meeting
Investors' enthusiasm for the start of lifting restrictions on movement due to coronavirus in a number of countries contributes to the growth of global stock indices. So, S&P 500 develops upward dynamics in the direction of key resistance level 2952.0 (ЕМА200, ЕМА144 on the daily chart, ЕМА50 on the weekly chart). At the same time, stabilization of the S&P 500 is likely near this level. Without additional incentive measures on the part of the Fed, it is unlikely to pass this level of resistance immediately.
Stock indices may continue to grow, and the dollar will decline even more if during the 2-day Fed meeting, which begins today, the leaders of the US central bank decide to expand economic stimulus in response to the crisis provoked by coronavirus. The Fed decision on rates will be published on Wednesday (at 18:00 GMT).
At the same time, it’s too early to relax. The peak of the coronavirus has not yet been passed. According to Johns Hopkins University, the number of cases of coronavirus in the world has already exceeded 3.04 million people. Medical experts warn that if restrictions and quarantine are removed too quickly, this could lead to another wave of the epidemic, which could make the global economy falling even deeper.
If, nevertheless, a breakdown of the resistance level 2952.0 takes place, then the next goal will be the resistance level 3020.0 (the Fibonacci level 23.6% of the downward correction to the growth since February 2016 and the level of 1807.0).
A breakdown of these two resistance levels 2952.0, 3020.0 will indicate a complete restoration of the long-term bullish trend of the S&P 500.
In an alternative scenario, a signal for sales may be a breakdown of the support level 2769.0 (ЕМА200 on the 4-hour chart). Below the key resistance level 2952.0, however, the long-term negative dynamics of the S&P 500 prevails.
Support Levels: 2875.0, 2811.0, 2790.0, 2769.0, 2718.0, 2690.0, 2643.0, 2600.0, 2500.0, 2415.0, 2319.0, 2240.0, 2183.0
Resistance Levels: 2952.0, 3000.0, 3020.0
Sell Stop 2870.0. Stop-Loss 2970.0. Goals 2811.0, 2790.0, 2769.0, 2718.0, 2690.0, 2643.0, 2600.0, 2500.0, 2415.0, 2319.0, 2240.0, 2183.0
Buy in the market. Stop-Loss 2870.0. Goals 2952.0, 3000.0, 3020.0, 3100.0, 3335.0
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