Global macro overview for 29/12/2017

Dow Jones Industrial at the close increased 0.26% up to 24837,51 points, S&P500 increased by 0.18% up to 2687,54 points and Nasdaq went up by 0.16% up to 650,50.16 points. Technological companies, telecoms and development companies contributed the most to DJI increases as the global investors hope that at the end of the year the stock exchanges may rise to record levels. From large technology companies, Apple and Facebook shares grew , biotech companies such as Gilead and Amgen were declining. Information technology sector is the best-performing sector on the New York Stock Exchange in 2017, it gained 38% from January.

The US economic data were positive as well. The manufacturing sector activity index in the Chicago region strongly increased in December, up to 67.6 points (in November, the index was 63.9 points). Analysts expected in the 12th drop of the index to 62.0 points. Up 0.7% (on monthly basis), the stocks of American wholesalers also went in November - the Trade Department said in the preliminary reading. Meanwhile, analysts expected a 0.3% increase in the inventory ratio. The number of unemployed people continuing to receive benefits amounted to 1.943 million a week, which ended on December 16th. Here, the analysts expected 1,900 million people. On the commodity market, crude oil price increases slightly slowed down, however, the cost of raw material is still high, given the prices for the last 2.5 years.

In conclusion, the sentiment among the US investors is still high and remains on elevated levels. This is why the market participants might expect another gain in 2018, which possibly start with so-called January effect.

Let's now take a look at the SPX (SP500 ETF) technical picture at the H1 time frame. The sequence of higher highs and higher lows continues. The market is trading above all of the moving averages, but the momentum remains neutral. The nearest technical support is seen at the level of 266.60 and the nearest technical resistance is seen at the level of 268.61.

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The material has been provided by InstaForex Company - www.instaforex.com