The index price of S&P500 (US500) slid down on Friday, decreasing the price to less than $2700 in pursuit of some major economic news releases. Talking about the technical bias, it is anticipated that it may remain bullish since the price of (US500) printed a higher high in the recent rally which moved downside.
S&P500 (US500) Technical Analysis
As of February 08, 2019, the index is being traded near $2689. Since the price is decreasing, an immediate 61.8% Fib level support can be seen around $2630. It may come across another support level around $2610, the trend line support and then a major horizontal support level is likely to act as strong support preventing the price from falling below $2518 as demonstrated in the given below chart.
Coming towards the upside, a resistance level may be seen around $2727, the trend resistance ahead of 2800, the psychological number and then comes $2939, the key horizontal resistance as demonstrated in the given above chart. The technical bias is expected to remain bullish as long as $2639, the major horizontal support level remains intact.
The United States Building Permits News
In the US, the figure concerning permits issued for construction of buildings remained 1.241 Million in September, as compared to 1.249 Million during the month before, down beating the economist expectation which was 1.280 Million. The data is taken from the news released by the Census Bureau and Department of Commerce, Unites States.
The figure represents the numbers of permits issued for the construction of upcoming projects. It indicates the movement in the investment level of the corporate sector causing some volatility in the US Dollar (USD) market. Generally speaking, the more permits issued during the due course of time the better it is for the US economy and therefore show a bullish trend for the US Dollar (USD) and vice versa.
Considering the overall price trend over the last few days, buying US500 near current levels may turn out to be a good decision over a short to medium term.