At the end of the year demand triumphs on US indices. Markets don’t mind approaching with great strides hike of interest rates in US , or the choice of Donald Trump for president of the United States. This may be explained in a simple way – MARKET DO NOT LIKE UNCERTAINTY.
Once again reaffirmed was the principle that you should make investment decisions independently, and the information from the mainstream media read the opposite. To recap what I wrote on Oct. 14 in the analysis of the S & P500: “The main scenario given by the mainstream media-these are approaching crash, which usually can end the movement in the opposite direction and break resistance level at 2,190 points.”
Uncertainty, which strongly affects the US stock exchange for years is the level of interest rates set by the Fed. Also in this issue we received last Wednesday almost 100% confirmation – in December, the Fed will raise interest rates. This happened after the publication of minutes of FOMC, which show that the majority of the members of the FOMC is after lifting the feet relatively quickly. It seems, therefore, that all the cards are already on the table, and markets may enjoy increases until appears on the agenda a new topic, which will trigger a period of uncertainty (eg. Elections in France and in Germany in 2017).
Contracts on the S&P500 index and the same index maintained yesterday above the level of 2200 points, which was a psychological resistance.
After a clear exceeding the level of 2200 points, the test of which this week meant that was achieved a historic high ,its no way to identify where growth impulse can lead index. Growth scenario is the most likely. If, however, the S & P500 cannot keep above the level of 2200 points ,than the next support levels are located at: 2170 points, 2145 points.
The situation is similar to contracts on the index DOW JONES (first chart below), where after breaking the resistance level at 18600 points, this week index has exceeded the psychological level of 19,000 points.
A little more patience must have demand for contracts for the NASDAQ 100. There resistance level of 4900 points is still beyond the reach of demand (the second chart below).