Improving US data bullish for SP500
Technical Analysis Summary S&P 500: Buy
| Indicator | Value | Signal |
| RSI | Neutral | |
| MACD | Buy | |
| Donchian Channel | Buy | |
| MA(200) | Buy | |
| Fractals | Buy | |
| Parabolic SAR | Buy |
Chart Analysis
On the daily timeframe SP500: D1 has risen above the 200-day moving average MA(200), which is rising itself. We believe the bullish momentum will continue after the price breaches above the upper boundary of Donchian channel at 3240.85. A level above this can be used as an entry point for placing a pending order to buy. The stop loss can be placed below 3105.79. After placing the order, the stop loss is to be moved every day to the next fractal low, following Parabolic signals. Thus, we are changing the expected profit/loss ratio to the breakeven point. If the price meets the stop loss level (3105.79) without reaching the order (3240.85), we recommend cancelling the order: the market has undergone internal changes which were not taken into account.
Fundamental Analysis of -
Economic data from US were positive recently. Will the SP500 rebound continue?
Recent US economic data were positive: industrial production grew faster than expected in June, and consumer prices together with capacity utilization rose more than expected. Thus industrial production expanded 5.4% over month after 1.4% increase in May when a 4.5% growth was forecast, consumer prices rose 0.6% over month after 0.1% decline in May, and capacity utilization (percentage of available resources utilized by manufacturers, mines, and utilities) rose to 68.6% in June from 65.1% in May. And on monetary front Federal Reserve Governor Lael Brainard called for sustained large scale asset purchases by the US central bank to support the recovery. Positive US economic data are bullish for SP500.