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USA500 - 05/06/2019

Micro Analysis

05 June, 2019

For General Information only. Not Intended to Provide Trading or Investment Advice. Your Capital is at Risk.

Technical Outlook: USA500 index rose around 2.00% on Tuesday (June 4), managing to break above the mark of 2800.00, which lately has acted as a trend designator. USA500 index has found strong support with Fed Chair Jerome Powell who pointed earlier this week to what markets have been portending for a while and that is an interest rate cut in 2019. From a technical perspective, USA500 could further strengthen if it manages to stay above the mark of 2800.00 (Pivot Point) and it can target next the rate of 2882.45 (Resistance 1), last tested almost three weeks ago, to the upside. The Daily Relative Strength Index has recently bounced off its oversold threshold of 30.0 testing its neutral level of 50.0. If the index soon breaks above the rate of 50.0 and ends up into bull territory, the USA500 could happen to further strengthen in value, as buyers will try to re- take control from sellers.

If, however, the USA500 index fails to stay above the mark of 2800.00 and recent upward recovery proves to be just a fake- out, prices could fall down to Support 1 of 2721.82, which was last tested in mid- March of 2019. The alternative scenario could be supported by exacerbated trade tensions between China and the US, and the US and Mexico recently.

Pivot Point:

2800.00

Resistance 3:

3050.00

Resistance 2:

2960.82

Resistance 1:

2882.45

Support 1:

2721.82

Support 2:

2635.95

Support 3:

2550.00


Graph: (USA500, Daily)

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