Wall Street indices started higher the day with the S&P 500 adding 0.37% at 3,017.71. The Dow Jones trading 0.31% higher at 27,230, while the Nasdaq trading 0.47% higher at 8,215 as traders digest the latest interest rate cut from Fed, which Chairman Powell describes it as “Insurance Against Risks”. President Donald Trump is unhappy with the cut, as he is asking for a rate reduction to zero. US and global equities, getting a boost from interest rate cuts and stimulus from central banks across the globe, despite the dismal economic growth outlook. S&P 500 getting a hand today from better macro data as the United States Philadelphia Fed Manufacturing Survey came in at 12, beating expectations of 11 in September above that the Existing Home Sales Change (month over month) came in at 1.3% toping expectations of -0.4% in August.
The CBOE Volatility Index or fear index, is giving up 2.94% at 13.54 just to confirm the positive market mood.
S&P has formed a strong floor at 2,822 during August which absorbed all the offers and signaled the rebound which today almost touched the highs. S&P 500 bullish momentum is intact as the index is just 7 points away from all-time highs at 3,027.98. On the upside immediate resistance is at 3,021 today’s high while more pressure will be met at 3,027 all-time high. On the downside S&P 500 first support stands at 2,988 today’s low and then at 2,947 the 200-day moving average. Traders looking to enter long positions can buy if the index closes above all time top, targeting the 3,100 level for profits, and can keep their long positions as far the index is trading above the 3,000 mark.