SP500 190523 Daily Chart
SP500 pulled back as Republicans and Democrats paused debt ceiling talks. The parties have little time before Treasury may face problems paying bills, which could happen as soon as June 1. Today, traders also focused on the comments from Fed Chair Jerome Powell. He was more dovish than expected, and the FedWatch Tool indicated that the probability of a rate hike at the next Fed meeting declined.
From the technical point of view, today’s pullbak looks healthy after the recent rally. RSI remains in the moderate territory, and there is plenty of room to gain additional upside momentum in the upcoming trading sessions.
R1:4200 – R2:4215 – R3:4250
S1:4175 – S2:4150 – S3:4115
NASDAQ 190523 Daily Chart
NASDAQ moved lower after an unsuccessful attempt to settle above the 13,900 level as traders decided to take some profits off the table after the recent rally.