Key Levels for SPX & DJIA – Is it Good time to Buy Stocks? - Forex News by FX Leaders

Key Levels for SPX & DJIA – Is it Good time to Buy Stocks?

Posted Wednesday, February 7, 2018 by
Arslan Butt • 1 min read

Almost all of the global stock market indices are trading bearish, especially the SPX and Nikkei. The bearish pullback came amid anxieties around soaring bond yields and higher inflation. These were bolstered on Friday when the US jobs report prompted concerns the Federal Reserve will boost rates at a faster pace than anticipated this year. For your info, Fed is expected to rise rate three more times in the year 2018.

Thus, the US equities exhibit noticeable slip on worries that the increase in the cost of borrowing will reduce the profit margins. Therefore, the investors were investing in the dollar-hedged securities such as Gold and Silver.

But now the scenario has bit changed. The stock markets are massively oversold and it’s a very good chance for investors to buy cheaper medicines for a longer term. Here are the levels

Let’s check out the trading levels.

S&P500- SPX- Trading Levels

Support     Resistance

2603.61    2728.83

2558.28    2808.72

2478.39    2854.05

Key Trading Level:    2,683.5

DJIA- Dow30 – Trading Levels

Support     Resistance

23672.91    25269.56

23000.07    26193.37

22076.26    26866.21

Key Trading Level:    24,596.72

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About the author

Arslan Butt // Index & Commodity Analyst
Arslan Butt is our Lead Commodities and Indices Analyst. Arslan is a professional market analyst and day trader. He holds an MBA in Behavioral Finance and is working towards his Ph.D. Before joining FX Leaders Arslan served as a senior analyst in a major brokerage firm. Arslan is also an experienced instructor and public speaker.
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