Wall Street indices started lower in early trading as traders turn cautious after trade negotiation between China and USA falter.
Yesterday, U.S. Fed Chair Jerome Powell pointed out that the impact of the recent interest rate cut is yet to be seen. He also noted that they expect a sustained expansion ahead for the U.S. economy which might increase the demand for oil.
On the data front the US Producer Price Index (month over month) came in at 0.4%, beating forecasts of 0.3% in October, the yearly Producer Price Index came in at 1.1%, also above forecasts of 0.9% in October. The U.S. Initial Jobless Claims came in at 225K above expectations of 215K for November 8. In Canada, the New Housing Price Index (MoM) came in at 0.2% above expectations of 0.1% in September.
The S&P 500 gives up 0.04% at 3,092.70. The Dow Jones trading 0.06% lower at 27,763, while the Nasdaq trading 0.18% lower at 8,467.
S&P 500 retreats from record highs, on the upside, immediate resistance stands at 3,096 today’s high while more pressure will be met at 3,100 psychological mark. S&P has formed a strong floor at 2,822 during August which absorbed all the offers and signalled the rebound which drove the index to all-time highs with the strongest rally the last six years. Traders must be cautious as the RSI index trades at 69.48 close to overbought levels.
On the downside S&P 500 first support stands at 3,089.6 today’s low and then at 3,000 Friday’s low. Investors looking to enter long positions can buy if the index closes above today’s high, targeting the 3,110 level for profits, and can keep their long positions as far the index is trading above the 3,050 mark.More content