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Important Notice - Fraud awareness
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Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 54.76% of retail investor accounts lose money when trading CFDs / Spread betting with this provider. You should consider whether you understand how CFDs / Spread betting work and whether you can afford to take the high risk of losing your money.
Important Notice - Fraud awareness
Important Notice - Scam alert
The vast majority of retail investor accounts lose money when trading CFDs / Spread betting with this provider.
Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. The vast majority of retail investor accounts lose money when trading CFDs / Spread betting with this provider. You should consider whether you understand how CFDs / Spread betting work and whether you can afford to take the high risk of losing your money.
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SPX500 Yields remain positive as investors await PMI report

SPX500 commenced the day positively with a net gain of $39.05 added to the previous payments of yesterday after the dollar index picked up again, returning above 107 during the Asian session today. The price is currently ranging at $3982.8. Investors remain optimistic as they await the Flash Services PMI report to be released today, which will determine the next direction for this US primary stock index.

The flash service Purchasing Managers Index (PMI) is essential data that considerably influences the stock and index market. This data gives an index figure of the diffusion level and purchasing managers' purchasing decisions in the general service industry. The Flash Service PMI is essential to the country's economic health. Often investors reacted quickly to the report from this data which means; high volatility will be expected for SPX500 today depending on the outcome of this data. A higher reading from this data suggests the US economy is still healthy, and the Purchasing Managers can carry on with their production activities. This means more jobs will be further created too. This will trigger more gains for SPX500 as more investors will be expected to invest in the US stock and index market. Especially once there is proof of a healthy economy from the PMI report. A lower reading from this data will spell doom instead for SPX500. This will indicate an unhealthy economy forcing investors to vacate the scene. The forecast for this data is 52.6, while the previous record was 52.7. The result must stay above 50 to provide confidence that the economy is not falling into recession.

Judging from the performance of SPX500 yesterday after the news of an interest rate hike for the Euro, one would conclude that investors seemed to have more hopes for the US economy than any other. Hence, the bulls pushed higher yesterday on the US stocks and Index market, bringing SPX500 to its current high price level and continuing to the present.

Observing the current bullish momentum for SPX500, one could project that the next target for this index is at the upper resistance at $4102.2. A break above this level will give room for higher levels, with the next target as $4168.6. Alternatively, should the current bullishness be defeated from a lower PMI reading, then we might experience a retest of the lower support at $3821.9. A break below will land the index price at $3684.3.

Investors are encouraged to utilise a proper risk management strategy on those days when high volatility is expected in the market.

Last Updated: 22/07/2022

This market commentary and analysis has been prepared for ATFX by a third party for general information purposes only. Any view expressed does not constitute a personal recommendation or solicitation to buy or sell as it does not take into account your personal circumstances or objectives, and should therefore not be interpreted as financial, investment or other advice, or relied upon as such. You should therefore seek independent advice before making any investment decisions. This information has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. We aim to establish and maintain and operate effective organisational and administrative arrangements with a view to taking all reasonable steps to prevent conflicts of interest from constituting or giving rise to a material risk of damage to the interests of our clients. The market data is derived from independent sources believed to be reliable, however we make no representation or warranty of its accuracy or completeness, and accept no responsibility for any consequence of its use by recipients. Reproduction of this information, in whole or in part, is not permitted.


 

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