Market Analysis

Powell drives S&P500 to new all-time high

The markets reacted positively to the Fed’s announcement on Wednesday that it might cut interest rates at one of its next meetings. The S&P500 is currently experiencing a new all-time high. The question that now arises is whether the bulls can continue to dominate the game and immediately produce another all-time high. Wednesday’s Fed meeting rekindled hopes that interest rates in the U.S. will fall soon. This could further boost equity markets, because risk-free interest rate investments such as US government bonds will decrease in interest, and many investors prefer to take a little more risk and invest in equity markets to get a higher return.

If the bulls continue to drive prices higher, the first structural barrier to the market could follow directly at 2.990 points. If the market manages to break through, it will have to work its way through unchartered territory. There could be another barrier in the 3.045 range.

If the bulls can’t hold out that long and the market pushes down, then an important structural level in the range of 2.877 points could support the market. If the market also falls through this zone, another structural area could wait at 2.821 points.

The MACD oscillator already showed a bullish crossing on June 6th and confirmed the signal by breaching the MACD line through the zero lines.

Fundamental and political factors are strongly influencing the current economic situation. The direction for the future will be determined by the signals from Japan’s G20 Summit next week towards the trade dispute between the U.S. and China.


Usa500 Daily Chart | Source: ActivTrader

Usa500 Daily Chart | Source: ActivTrader


Written by Daniel Schuetz, External Analyst, ActivTrades

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