S&P 500 SET FOR LARGEST WEEKLY RISE IN 2018, PMI SUPPORTIVE
S&P 500 futures are currently trading at 2746.50- higher by 0.18% as compared to the previous close. The index futures closed in Positive territory in the last trading session also. Further back, the benchmark futures closed in the green in 5 out of last 7 trading sessions.
US Trade Representative Lighthizer said on Friday that he expected the meeting between the US President and his Chinese counterpart to be a “success,” raising hope that a trade truce between the two countries could be struck. The index futures erased some of its earlier losses after the news.
In the cash markets, the S&P 500 has risen 1% so far in November. In weekly terms, the benchmark is on track to post its largest weekly rise since February. Dovish comments from the Fed Chief and the latest Fed minutes have helped the benchmark rise 4% (so far) this week.
Index-member HP rose 1.5 percent after its quarterly revenue topped consensus estimates on Thursday, driven by growth in its personal systems business. PVH was up 4.1%, after the Calvin Klein parent company reported third-quarter earnings above the consensus estimates and raised its full-year 2018 guidance.
On the other hand, General Electric was down 4.7% after the Wall Street Journal reported several former employees told the U.S. securities regulator that the company failed to acknowledge worsening results in the insurance business. Marriott International was off by 4.7% after the company said a guest reservation database of its Starwood Hotel brand was breached, potentially exposing information on about 500 million guests.
A survey of business conditions in the Chicago region that’s often a bellwether for the broader U.S. economy rose in November to a 4-1/2 year high. The Chicago PMI reading came in at 66.4 –above the market expectations of 58.6. The index also ended a streak of three straight declines.
On the technical front, the RSI is currently at 55.68% and suggests that the market can continue trading sideways. The current price is above MA5 and MA20. The %K has crossed the %D from below to the upside at around 7% and suggests that the market may head 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 2740, Take Profit At 2765 Stop Loss At 2730