S&P 500 Analysis Report With Charting Trends – 04 September 2023
04 Sep 2023
S&P 500 forecast: As job figures fuel confidence for rate hikes, the S&P 500 ends higher.
The S&P 500 (.SPX) ended the day higher on Friday as predictions of a slowdown in interest rate hikes this month were confirmed by a rise in unemployment but shares of streaming companies fell because of a rate dispute between Disney and Charter Communications.
According to the Labour Department’s data, the jobless rate increased to 3.8% in August as wage growth stagnated. Even though the statistics for July were reduced to 157,000 job additions, nonfarm payrolls increased more than anticipated.
The statistics strengthened views that the Federal Reserve is nearing the end of its cycle of interest rate increases and contributed to recent macroeconomic indicators that the central bank is winning the war against inflation.
According to CME’s Fed Watch tool, interest rate futures indicate that traders believe there is a 93% probability the Fed will decide to hold interest rates steady at its meeting later this month.
The Dow Jones Industrial Average (.DJI) increased by 0.33% to 34,837.71 points, while the Nasdaq (.IXIC) fell by 0.02% to 14,031.82 points.
Exponential Moving Average
- EMA 5: The 5-day EMA stands at 4525.01, indicating a Buy signal.
- EMA 20: The 20-day EMA is at 4494.98, signalling a Buy sentiment.
- EMA 50: The 50-day EMA currently sits at 4478.47, suggesting a Buy indication.
Simple Moving Average
- SMA 5: The 5-day SMA shows a value of 4526.47, reinforcing the Buy recommendation.
- SMA 20: With a value of 4482.42, the 20-day SMA also supports a Buy sentiment.
- SMA 50: The 50-day SMA registers at 4453.79, affirming a Buy indication.
RSI (Relative Strength Index)
The RSI, calculated over a 14-day period, stands at 61.39 signifying a Positive signal.
The %K value of the Stochastic Oscillator suggests a Neutral stance.
Resistance And Support Levels
- Resistance: The resistance level is observed at 4548.03
- Support: The support level is identified at 4517.30
Summary And Trade Suggestions
In summary, the technical analysis of the S&P 500 points towards a Buy sentiment. Considering the indicators, moving averages, and oscillators, it seems favourable for traders to enter a long position.
- Entry Point: 4560.91
- Take Profit: 4603.54
- Stop Loss: 4531.18