Ross Woodfield
Blackwell Global Investments Limited
The US equity markets have pushed out to record highs recently. A slight pullback could provide an entry for anyone looking to go long on the main US index.
The US stock markets have pulled back recently from the record highs as the Fed remained committed to increasing interest by the middle of the year. In recent weeks we have seen a reduction in inflation rates which gave the stock bulls hope the Fed would old off raising interest rates.
There are other reasons for the record highs and this is no more evident than in the Labour markets. US Nonfarm payrolls have consistently been returning 200k+ results and the Unemployment claims figures are averaging under the 300k mark. Manufacturing PMI’s and various other indicators are showing the relative strength in the US economy, which has helped to push stocks higher.
The pullback may provide an entry position for traders looking to long the S&P 500. Looking at the chart the 2061.32 level of support is one that stands out and is likely to act as rather solid support if the pullback continues. If it holds, this would be a good level to long from. Support on the way there will be found at 2082.09. If the Fed becomes more hawkish over the next month or so look for support further down at 2024.39.
The longer term outlook for US equities is still bullish given the strong economic data coming out at the moment. Watch out for Non-farm Payrolls at the end of this week as they can do funny things to these markets.
Forex and CFDs are leveraged financial instruments. Trading on such leveraged products carries a high level of risk and may not be suitable for all investors. Please ensure that you read and fully understand the Risk Disclosure Policy before entering any transaction with Blackwell Global Investments Limited.
Recommended Content
Editors’ Picks
EUR/USD extends gains above 1.0700, focus on key US data
EUR/USD meets fresh demand and rises toward 1.0750 in the European session on Thursday. Renewed US Dollar weakness offsets the risk-off market environment, supporting the pair ahead of the key US GDP and PCE inflation data.
USD/JPY keeps pushing higher, eyes 156.00 ahead of US GDP data
USD/JPY keeps breaking into its highest chart territory since June of 1990 early Thursday, recapturing 155.50 for the first time in 34 years as the Japanese Yen remains vulnerable, despite looming intervention risks. The focus shifts to Thursday's US GDP report and the BoJ decision on Friday.
Gold closes below key $2,318 support, US GDP holds the key
Gold price is breathing a sigh of relief early Thursday after testing offers near $2,315 once again. Broad risk-aversion seems to be helping Gold find a floor, as traders refrain from placing any fresh directional bets on the bright metal ahead of the preliminary reading of the US first-quarter GDP due later on Thursday.
Injective price weakness persists despite over 5.9 million INJ tokens burned
Injective price is trading with a bearish bias, stuck in the lower section of the market range. The bearish outlook abounds despite the network's deflationary efforts to pump the price.
US Q1 GDP Preview: Economic growth set to remain firm in, albeit easing from Q4
The United States Gross Domestic Product (GDP) is seen expanding at an annualized rate of 2.5% in Q1. The current resilience of the US economy bolsters the case for a soft landing.