Global macro overview for 07/09/2015:
The American stocks dropped last Friday with the main benchmark falling 1.5%. This kind of move can be often observed as the long weekend in USA prompts traders to liquidate their positions and take profits out of the table. Moreover, there is still uncertainty about the Chinese stock market open on Monday, so traders do not want to be exposed to this kind of a risky event when their own stock market is closed for business. Nevertheless, risk appetite might return today as the Chinese officials assured at G20 meeting about their willingness to continue the structural reforms and support the economic growth.
From the technical point of view, the SPY index (S&P500 ETF) has closed inside the bearish zone after last week’s impressive recovery . Nevertheless, it still trades below the neutral zone and below the golden trend line. Current support comes at the level of 181.29 and resistance is seen at the level of 197.80.
The material has been provided by InstaForex Company – www.instaforex.com