S&P 500 Starts Lower after Worst ISM Manufacturing Data
Wall Street indices started lower the day with the S&P 500 giving up 0.46% at 2,968.5. The Dow Jones trading 0.46% lower at 26,794, while the Nasdaq trading 0.03% lower after ISM manufacturing data came in at 47.8 to a 10-year low, contracting for a second straight month. Analysts were expecting a reading of 50.10
The CBOE Volatility Index or fear index is adding 5.11% at 17.07 to confirm the nervous market mood.
S&P has formed a strong floor at 2,822 during August which absorbed all the offers and signalled the rebound which almost touched the all-time highs. S&P 500 bullish momentum is intact as the index despite today’s losses holds above all the major daily moving averages. On the upside immediate resistance is at 2,992 today’s high while more pressure will be met at 3,027 the all-time high. On the downside S&P 500 first support stands at 2,961 today’s low and then at 2,944 the 50-day moving average. Traders looking to enter long positions can buy if the index closes above today’s high, targeting the 3,100 level for profits, and can keep their long positions as far the index is trading above the 2,900 mark.
The European indices trading higher, the FTSE 100 is 0.52 percent lower at 7,369 as the pound trades above 1.22. DAX index trading 0.93 per cent lower at 12,314 while CAC 40 in Paris also trading 1.10 per cent lower at 5,615.Download our latest quarterly market outlookfor our longer-term trade ideas.
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