S&P 500 RISES ABOVE MA5 ON EASING TRADE CONCERNS AND CPI
S&P 500 futures are currently trading at 3016.25- higher by 0.49% as compared to the previous close. The index Futures have been closing in positive territory since the last two trading sessions.
In the cash markets, the benchmark index inched up 0.54% to 3,016.98 at the time of writing.
U.S. equities today surged to their highs of the day after news that Washington is considering over an interim trade deal with Beijing. According to market sources, the U.S. President’ advisors were considering an interim deal with China that would delay tariffs.
Meanwhile, the U.S. President said on Wednesday that increased tariffs on 250 billion dollars’ worth of Chinese goods have now been delayed by two weeks at the request of Chinese Vice Premier as a gesture of good will.
Officials from both the countries are expected to hold trade talks in Washington at the beginning of the October. The Chinese ministry of commerce said in the last week said that consultations will be made in mid-September for the meeting.
Treasury Secretary also said that the U.S. President could reach a deal with China at any moment but wants a good deal for Americans. U.S. Treasury yields also gained today on positive news on the U.S.-China trade front, sparking a selloff in haven assets like government bonds.
The technology sector was the best performer in the benchmark index, led by a 3.5% rise in PayPal.
The broad-market index entered today’s session less than 1% from record highs reached in July. The benchmark index on Wednesday also broke above 3,000 for the first time since 31st July. The benchmark index recorded 36 new 52-week highs and 1 new low.
Top gainers in the S&P 500 include LKQ corp (up 10.7%), Mattel (up 5.3%), and Varian Medical System (up 4%) at the time of writing.
On the economic front, Core CPI (MoM) for August released earlier today came in at 0.3%. The index change was above the market expectation of 0.2%. In addition, Initial Jobless Claims released earlier today fell to 204K in the week ended 7th September from 219K in the week prior. Claims figure was also below the consensus estimates of 215K.
On the technical front, the RSI is currently at 65.05% and suggests that the market can continue trading sideways. The current price is above the MA5. The current price is above the middle line of the Bollinger bands and is heading upwards.
Overall Bias is Positive and Short-term trades can be initiated with tight Stop Loss and Take Profit targets.
Trade Suggestion-Limit Buy At 3010, Take Profit At 3022 Stop Loss At 3004