The index price of S&P500 (US500) inched lower on Thursday, decreasing the price of the futures to more than $2800 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 upside.
S&P500 (US500) Technical Analysis
As of March 07, 2019, the index is being traded near $2767. Since the price is decreasing, the trend line resistance may come around $2814, ahead of $2854, another trend line resistance and then $2939 the major horizontal resistance level as demonstrated in the given below chart.
Coming towards the downside, a support level may be seen around $2704, the 23.6% Fib level support ahead of 2634, the key horizontal support level and then comes $2579, the low of January 15, 2019, as demonstrated in the given above chart. The technical bias is expected to remain bullish as long as $2704, the major horizontal support level remains intact.
USD 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.