S&P 500 index eyes its record highs, gets set for Fed
U.S. equity index futures green: Nasdaq 100 up ~0.6%
Aug retail sales MM > estimate; ex-Autos MM < estimate
Euro STOXX 600 index up ~0.8%
Dollar, crude up slightly; bitcoin jumps >3%; gold slips
U.S. 10-Year Treasury yield edges up to ~3.64%
Welcome to the home for real-time coverage of markets brought to you by Reuters reporters. You can share your thoughts with us at markets.research@thomsonreuters.com
S&P 500 INDEX EYES ITS RECORD HIGHS, GETS SET FOR FED
The Dow Jones Industrial Average .DJI scored fresh record highs on Monday.
Meanwhile, the S&P 500 index .SPX has now risen six days in a row, and finds itself just shy of its record highs:
The S&P 500 index ended Monday at 5,633.09, putting it down just 0.33% from its 5,651.62 August 26 intraday high.
The benchmark index finished down 0.65% from its 5,669.67 July 16 intraday record high, and 0.6% from its 5,667.20 July 16 record closing high.
Thus, potential for a double top persists given that there are two peaks that occurred in succession (on July 16 and September 6), that were generally at the same price level. A double top pattern can signal that a prevailing uptrend is in the process of reversing over the short or longer-term.
Given this, traders will be keenly focused on the SPX price action that comes out of the Fed's highly anticipated decision on interest rates due Wednesday at 2 PM EDT.
On a forthright thrust to new highs, the S&P 500 would then face a log-scale resistance line from its 1929 high, which, on a monthly basis, now resides just over 6,000. This line is now roughly 6% above the current intraday record high.
On weakness, the 10-week moving average (WMA) is support around 5,515.
More importantly, traders would eye the rising 20-week moving average, which is now around 5,455, and the September 6 low which was at 5,402.62.
Of note, since the S&P 500 reclaimed its 20-WMA in November 2023, it hasn't registered a weekly close back below it.
The rising 40-WMA, which helped contain the early August swoon, is around 5,230 this week.
The Nasdaq composite .IXIC ended Monday down about 6% from its record highs. The small-cap Russell 2000 .RUT is still more than 10% below its record levels.
(Terence Gabriel)
*****
FOR TUESDAY'S EARLIER LIVE MARKETS POSTS:
YEN RALLY: SLAM DUNK OR WIDOWMAKER? - CLICK HERE
EUROPEAN CYCLICALS READY TO REBOUND - MORGAN STANLEY - CLICK HERE
EUROPEAN BANKS CHEAP ENOUGH TO ABSORB RATE CUTS - UBS - CLICK HERE
CAN TRUMP WEAKEN THE DOLLAR? - CLICK HERE
STOXX ON THE UP - CLICK HERE
EUROPEAN FUTURES EDGE HIGHER ON FED OPTIMISM - CLICK HERE
YEN'S BIG WEEK BEGINS - CLICK HERE
SPX09172024 https://tmsnrt.rs/3XvjTl9
(Terence Gabriel is a Reuters market analyst. The views expressed are his own)
</body></html>Related Assets
Latest News
Disclaimer: The XM Group entities provide execution-only service and access to our Online Trading Facility, permitting a person to view and/or use the content available on or via the website, is not intended to change or expand on this, nor does it change or expand on this. Such access and use are always subject to: (i) Terms and Conditions; (ii) Risk Warnings; and (iii) Full Disclaimer. Such content is therefore provided as no more than general information. Particularly, please be aware that the contents of our Online Trading Facility are neither a solicitation, nor an offer to enter any transactions on the financial markets. Trading on any financial market involves a significant level of risk to your capital.
All material published on our Online Trading Facility is intended for educational/informational purposes only, and does not contain – nor should it be considered as containing – financial, investment tax or trading advice and recommendations; or a record of our trading prices; or an offer of, or solicitation for, a transaction in any financial instruments; or unsolicited financial promotions to you.
Any third-party content, as well as content prepared by XM, such as: opinions, news, research, analyses, prices and other information or links to third-party sites contained on this website are provided on an “as-is” basis, as general market commentary, and do not constitute investment advice. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, it would be considered as marketing communication under the relevant laws and regulations. Please ensure that you have read and understood our Notification on Non-Independent Investment. Research and Risk Warning concerning the foregoing information, which can be accessed here.
