S&P 500 FALLS BELOW MA5 ON WEAK ECONOMIC DATA

S&P 500 futures are currently trading at 2777.50-lower by 0.34% as compared to the previous close. The index futures, however, closed in positive territory in the last trading session.

In the cash markets, the S&P 500 inched down 0.16%, led lower by the real estate and communication sectors.

Officials from China and the U.S. met again in Washington on Thursday. Reports early Thursday morning said Washington and Beijing have begun drawing up memorandums of understanding over trade. U.S. President Donald Trump earlier this week said that a March 1 deadline isn’t a “magical” date, which investors took as a sign that tariffs on  imports of Chinese goods may not automatically rise at that time, if progress continues toward a deal.

Index-member Nike Inc. was in focus after Duke University forward Zion Williamson was lost to a knee injury seconds into a basketball game against North Carolina, when his foot slid on the floor and his Nike-made shoe came apart. Stocks of the company were down 1.24% Thursday.

On the other hand, Newmont Mining Corp’s stock rose 0.60%, after the gold miner beat profit and sales expectations for the fourth quarter. Stocks of Albermarle Corp rose 6.28% today, after the lithium producer released earnings report Wednesday evening that showed the company beating Wall Street expectations for profit and revenue in the fourth quarter.

The broad-market index is up more than 10% this year as the Federal Reserve signaled patience in future rate hikes and amid perceived progress in U.S.-China trade talks.

On the economic front, the Philadelphia Federal Reserve business index for February released earlier today came in at -4.1. It was its lowest level since May 2016. The index reading was also below the market expectation and was 17 in January.

In addition, Core Durable Goods Orders (MoM) for December also out today came in at 0.1%. Orders were below the consensus estimates of 0.2%.

On the technical front, the RSI is currently at 65.82% and suggests that the market can move in the downward direction. The current price is below the MA5. The %K has crossed the %D from above to the downside at around 93% and suggests that the market may head downwards.

Overall Bias is Negative and Short-term trades can be initiated with tight Stop Loss and Take Profit targets.

 

Trade Suggestion-Limit Sell At 2780, Take Profit At 2765 Stop Loss At 2788

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