Global macro overview for 29/03/2018

Wall Street had all day long to decide whether the market situation was well on the upside Monday or strong Tuesday's down as there were no new factors that could push the stock market in some direction. Global investors learned on Wednesday that annualized GDP in the fourth quarter in the US increased by 2.9% (versus 2.7% expected). It was the final read, so there was practically no impact on market behavior. Published by the NAR (Association of Intermediaries) index of signed contracts for the purchase of houses on the secondary market in February increased by 3.1% (versus 2.1% expected).

The most important thing today is that tomorrow, on Good Friday, there are no sessions both in Europe and in many other countries (including the US). It must be remembered, however, that there is no session on Easter Monday in Europe, and Wall Street is working as the usual. It can already significantly reduce the activity of investors, so the end of the session may be accidental.

Let's now take a look at the SP500 technical picture at the H4 time frame. The market was too weak to even cover the gap down between the levels of 268.89 - 270.30, so now the bears might want to test the recent lows at the level of 257.87.The momentum is still below its fifty level, which is another clue supporting the bearish outlook. If the level of 257.87 is broken, then the next technical support is seen at the level of 252.93.


The material has been provided by InstaForex Company -