S&P & Eth in focus ahead of this week

31 July, 2018

Equity markets will be large movers this week with all the central bank announcements expected. On top of all of this will of course be all the earning reports due out, with many of the largest players in the market expected to report robust earnings, but there is plenty of room for disappointment as analysts are expecting big gains on the back of all this economic growth. So far though it has not been positive for tech stocks and equity markets are coming under pressure. There is also the prospect of an interest rise in the near future, especially with the unemployment rate expected to fall to a record 3.9% this week. So all of this adding further pressure to equity markets at present. 

Looking at the S&P 500 on the charts and it's clear the sell-off in tech is putting pressure on the index  it has it has been falling at a rapid over the last few days. After touching the key level of resistance at 2847 it has since seen some serious selling pressure after the bulls found no more gas. However, long term it still looks bullish as each sell off has seen sustained bearish pressure and the waves have been trending higher in a bullish fashion. In the event that the bearish push continues then support levels can be found at 2789 and 2762 with the 100 day and 200 day moving average likely to intersect at a potential trend line in this market.

Ethereum continues to be stuck in the stubborn 400 dollar range as of late, with no reprieve in sight, however it may not be all bad news for crypto bulls or bears out there looking for some action. So far Ethereum has been moving sideways in no real hurry, but we are starting to see some tightening in the market at present, which has formed a flag pattern. As a result I would expect the market to be looking for a potential breakout off the back of this once one of the trend lines breaks. In this instance I am semi bullish, as crypto is starting to see some real traction again after a suffering some serious blows in the past few months.

Looking at key levels here we can see that support can be found at 411 and 365 in this market. In the event the bulls look to jump higher resistance can be found at 516 and 590. Any breakthrough of either 411 and 516 should be treated like an aggressive signal in the market and I would expect either the bulls or bears to jump in to see how far things can be pushed.


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