Monday, March 20, 2023

US macroeconomic data boosts the S&P 500

Positive US macroeconomic data was released yesterday, giving a sharp boost to the Standard & Poor’s 500.

fundamental analysis

Durable goods requests were published yesterday, standing at 5.6%, higher than expected and as the last one. On the other hand, US annual GDP for the fourth quarter was higher than the estimate by 2.9%. These results show growth in the economy, which strengthens the stock market, driving the S&P 500 upward during the North American session.

However, it should be kept in mind that the Fed continues to struggle against inflationary pressures and hence, these will be the figures that will be taken into account when setting monetary policy in the next month.

technical analysis

on the 1 hour chart S&P 500An upward trend can be seen above the Bollinger Bands, with a gain of more than 0.6 percent since the opening of the day, with the pair consolidating at $4,035.83 after an opening above $4,014.75.

Continuing the technical analysis, it can be observed that the price has crossed all the Bollinger Bands including the upper one, it is now trading above them, showing a strong bullish trend. For their part, prices are above the cloud for the Ichimoku Kinko Hyo and average for the Chikou Span. Lastly, the RSI shows that the trend has gained more and more strength from the buyers.

For sell positions, the support of USD 4,014.93 stands and for buy operations, the resistance of USD 4,070.27, a break of another bearish trendline to close the day.

Nation World News Desk
Nation World News Desk
Nation World News is the fastest emerging news website covering all the latest news, world’s top stories, science news entertainment sports cricket’s latest discoveries, new technology gadgets, politics news, and more.
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