S&P 500 RISES ABOVE MA5 ON TRADE OPTIMISM
S&P 500 futures are currently trading at 2935.30- higher by 0.50% as compared to the previous close. The index futures closed in positive territory in the last trading session also.
In the cash markets, the benchmark index added 0.55% to 2,935.56 at the time of writing.
U.S. equities gained today after the U.S. President said he will meet with the Chinese vice Premier on Friday, increasing hope the two sides could make progress on the trade front.
Trade bellwether Caterpillar rose 1.86% on the news. Goldman Sachs and Morgan Stanley added 1.58% and 1.72% respectively at the time of writing.
According to market sources, the two economic powerhouses made no progress in deputy-level trade talks this week.
Delta Airlines was among the top losers on the index after the company forecast disappointing current-quarter profit.
According to market sources, the U.S. was considering an agreement to suspend next week’s tariff increase for a currency agreement.
The benchmark index recorded 5 new 52-week highs and 4 new lows.
Other top gainers in the S&P 500 include Skyworks Solutions (up 4.9%), Qorvo (up 4.5%), and Westrock (up 4%) at the time of writing.
On the economic front, Core CPI (MoM) for September released earlier today came in at 0.1%. The CPI change was below the market expectation of 0.2%.
In addition, Initial Jobless Claims also released earlier today fell to 210K in the week ended 5th October from 220K in the week prior. Claims figure was also below the consensus estimates of 215K.
On the technical front, the RSI is currently at 46.91% and suggests that the market can move in the upward direction. The current price is above the MA5. The current price is below the middle line of the Bollinger bands but 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 2932, Take Profit At 2946 Stop Loss At 2925