Positive data and dovish Fed bullish for SP500
Federal Reserve indicated it would act to support expansion with data pointing to continued strength of US economy. Will the SP500 stock index continue advancing?
US monetary authority indicated a leaning toward easier policy at June 17-18 policy meeting. While the Federal Reserve left federal funds rates unchanged in 2.25%-2.5% range, chairman Powell said the central bank would “act as appropriate to sustain the expansion”. US economic data were positive on balance ahead of the Federal Reserve meeting: US retail sales grew 0.5% in May, industrial production rose 0.4% when 0.2% rise was expected, and utilization edged up 0.2 percentage point to 78.1%. And while housing starts declined 0.9% on month in May, building permits rose 0.3% after 0.2% increase in April. With the Federal Reserve vowing to take measures if expansion is jeopardized in case of prolonged US-China tariff standoff positive economic data are bullish for US equities market.
On the daily timeframe SP500: D1 is rising since failure to close below Fibonacci 61.8 level. It has returned above 200-day moving average MA(200). These are bullish developments.
Technical Analysis Summary
Order Buy
Buy stop Above 2959.22
Stop loss Below 2866.47
Federal Reserve indicated it would act to support expansion with data pointing to continued strength of US economy. Will the SP500 stock index continue advancing?
US monetary authority indicated a leaning toward easier policy at June 17-18 policy meeting. While the Federal Reserve left federal funds rates unchanged in 2.25%-2.5% range, chairman Powell said the central bank would “act as appropriate to sustain the expansion”. US economic data were positive on balance ahead of the Federal Reserve meeting: US retail sales grew 0.5% in May, industrial production rose 0.4% when 0.2% rise was expected, and utilization edged up 0.2 percentage point to 78.1%. And while housing starts declined 0.9% on month in May, building permits rose 0.3% after 0.2% increase in April. With the Federal Reserve vowing to take measures if expansion is jeopardized in case of prolonged US-China tariff standoff positive economic data are bullish for US equities market.
On the daily timeframe SP500: D1 is rising since failure to close below Fibonacci 61.8 level. It has returned above 200-day moving average MA(200). These are bullish developments.
- The Donchian channel indicates uptrend: it is tilted up.
- The Parabolic indicator has formed a buy signal.
- The MACD indicator is above the signal line and the gap is widening, which is a bullish signal.
- The RSI oscillator is rising but has not reached the overbought zone.
Technical Analysis Summary
Order Buy
Buy stop Above 2959.22
Stop loss Below 2866.47