Wall Street indices started higher the day but as of writing the S&P 500 turn lower giving up 0.12% at 2,995.31. The Dow Jones trading 0.15% higher at 26,998, while the Nasdaq trading 0.13% lower at 8,102 after the Consumer Confidence Index dropped to 125.1 in September below forecasts of 133.5 expected. The Richmond Fed Manufacturing Index came in at -9 topping forecasts of -11 in September. The bulls argue that with interest rates low around the globe and many bond yields negative, equities with a yield remain attractive despite high valuation.
The CBOE Volatility Index or fear index, is adding 1.14% at 15.08 just to confirm the nervous market mood.
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S&P 500 bullish momentum is intact as the index is just 33 points away from all-time highs at 3,027.98. S&P has formed a strong floor at 2,822 during August which absorbed all the offers and signaled the rebound which drove the index close to yearly highs. On the downside, S&P 500 first support stands at 2,992 today’s low and then at 2,946 the 200-day moving average. On the upside immediate resistance is at 3,009 today’s high while more pressure will be met at 3,027 all-time high. 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.
The European indices trading mixed, the FTSE 100 trading 0.53 percent lower at 7,285 as the pound trades above 1.2470. DAX index trading 0.24 per cent lower at 12,313 while CAC 40 in Paris is 0.08 per cent lower at 5,626.Download our latest quarterly market outlook for our longer-term trade ideas.
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