S&P 500 Falls from Record High in Anticipation of Key News
On Friday, at 15:30 GMT+3, the Core PCE Price Index values will be released an economic indicator to which the Federal Reserve pays special attention when assessing inflation levels in the US. This event is likely to cause a surge of news in the financial markets, and its anticipation will influence sentiments throughout the week.
On Monday morning, the S&P 500 Index (US SPX 500 mini on FXOpen) fell to 5465 points after a historical record above 5500 points was set on June 20th. The decline was contributed by Fridays report from the National Association of Realtors, which showed a drop in existing home sales in May compared to the previous month.
Technical analysis of the daily chart of the S&P 500 Index (US SPX 500 mini on FXOpen) shows that:
the price is in a large upward trend that began last year;
the price is near the upper boundary of this channel;
the price has fallen below the psychological level of 5500;
the price is still in the June upward trend (shown in green);
the RSI indicator points to some market overbought conditions.
Given these facts, it is reasonable to assume that the S&P 500 Index (US SPX 500 mini on FXOpen) is in a vulnerable position for a pullback from the resistance block formed by the psychological level of 5500 and the upper boundary of the channel. The June upward trend may be broken.
Moreover, a possible correction might take on a threatening character if Fridays news shows that US inflation is not slowing down which would strengthen market participants belief that the period of high rates will last longer than expected.
Read more: https://fxopen.com/blog/en/oa-s-p-500-falls-from-record-high-in-anticipation-of-key-news/
Text source: Forex Trading Blog
