ForexTime
European shares were alive on Wednesday as a result of the positive mood in Asia after Chinese tech giant Alibaba announced that it would split into six business units.
The overall risk-on mood has been influenced by the decreasing concerns about the banking sector. US futures are now signaling a positive open. Markets seem to have regained a sense of normality after the turmoil witnessed over the last few weeks. The focus is now back on key economic data as well as risk events. The next few days could be even more eventful, especially for US markets due to Fed speeches, Senate hearings on Silicon Valley Bank, and the Fed’s preferred measure on inflation.
The string of data and risk events that are expected to affect the US economy today make it imperative that we pay attention to US indices. Technical analysis is our only weapon.
S&P 500 approaches 50-day SMA
The SPX500 has had a difficult week thanks to fundamental forces.
Although prices are trading above the 200-day and 100-day Simple Moving Averages, they are still below the 50-day SMA. If prices close solidly and break above 4000, it could lead to a higher move towards 4050. Prices may reach 4090 if they continue to fall below this level. Alternativly, a sustained decline below 4000 could lead to a…
