SPX & NKY Consolidates ahead of Fed Statement Tomorrow

Who’s up for trading the S&P500 and Nikkei this week? During the Asian session, the volatility remained low as most of the European and Asian investors are out due to labor day holiday. But, we expect the U.S. & U.K. sessions to be volatile.

Traders in the global stock markets are extremely cautious as the market braces for corporate earnings reports this week. Moreover, the economic figures from the U.S. came in below expectations. In particular, the Personal Income and Pending Home Sales fell short of expectations.

The greenback, on the other hand, remains ultra-strong due to a positive NFP forecast. Federal Reserve is due to release its monetary policy statement tomorrow and this may drive massive volatility in the global stocks. So, let’s take a quick look at the support & resistance levels for S&P500 and Nikkei.  

S&P 500 – Technical Levels

Support     Resistance

2628.3    2682.46

2611.58    2699.18

2584.5    2726.26

Key Trading Level:    2655.38

Nikkei – Technical Levels

Support     Resistance

22178.7    22507.26

22077.21    22608.75

21912.94    22773.02

Key Trading Level:    22342.98