The American economy is slowing. The shocking figures of business activity in the US industrial sector and the failed data from ADP on unemployment collapsed the US dollar on all fronts, giving a reason not to doubt the October rate cut. Regular rumors about Trump’s next impeachment add fuel to the fire.
At the end of yesterday, American sites closed in the red zone. The S&P 500 fell to almost 1.8%, the DJ lost even more, and the 10-year bond also lost a lot.
Yesterday, the S&P 500 closed below the important psychological level of 2900, although everyone was waiting for a consolidation of 3000. Against this background, the stock bulls fixed part of the long positions – which caused such a collapse. In my opinion, it can continue and be realized in the form of the third wave of the fall of the broad market index.
Against this background, I recommend taking short positions on pullbacks to update the buyers’ key stop area in the area of quotation 2820. I also recommend using the futures quotes of the index to fix positions.
The material has been provided by InstaForex Company – www.instaforex.com
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