SPX & DJIA Key Trading Levels – Fed’s Powell & Trump Shakes the Sentiments - Forex News by FX Leaders
Trump Deliver Decision on Iran Nuclear Deal

SPX & DJIA Key Trading Levels – Fed’s Powell & Trump Shakes the Sentiments

Posted Wednesday, May 9, 2018 by
Arslan Butt • 1 min read

The U.S. stock market indices SPX & DJIA are heading north in a lighter tone. The uncertainty drove by Fed Powells and U.S. president Trump is keeping the indices in check. President Trump maintained the Iran deal one-sided and said it should have never been made in the first place. Moreover, it doesn’t prevent Iran from building a nuclear bomb. The news helped to halt the bullish trend of the indices.

In addition to this, on Tuesday, the Federal Reserve Chairman Jerome Powell stated that the U.S. central bank’s plan for gradual interest-rate increases “should not be a surprise” as financial markets already had been aware.

Traders, speaking about the rate hikes, that is never in favor of the corporate sector. The stock market investors usually hate higher interest rates. Companies pay higher interest rates from the profits made, which reduces the EPS (earning per share) and that’s something investors will never like. For that reason, despite the nice fundamental releases, the investors aren’t entering the stock markets. Take a look at the trading levels of SPX and DJIA for this week.

S&P500- SPX- Trading Levels

Support     Resistance 

2611.06        2699.36

2558.69       2735.29

2522.76       2787.66

Key Trading Level:  2646.99

DJIA- Dow30 – Trading Levels

Support     Resistance 

23696.47     24663.39

23130.43     25064.27

22729.55     25630.31

Key Trading Level:  24097.35

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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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