5:06 PM · 16 September 2022

US500 hovers near 8-week low

The benchmark US500 tumbled during today's session to lowest level since mid-July as profit warning from major logistics company FedEx (FDX.US) raised worries about aggressive rate hikes from FED next week and slowing global economy. As a result US500 extended recent declines and broke below major support at 3900 pts. Moods briefly improved after the latest report from University of Michigan showed that inflation expectations eased this month and the headline was close to expectations. Nevertheless, upward moved turned out to be short-lived and fresh comments from president Putin again pushed indexes lower. The Russian leader said that "the main goal is to liberate Donbas region" and "we are not in a hurry" which means further problems for the EU energy sector. Since main sentiment remains bearish, further downward move towards next support at 3800 pts cannot be ruled out. This level is marked with a lower limit of the 1:1 structure and 38.2% Fibonacci retracement of the upward wave launched in March 2020. 

US500, H4 interval. Source: xStation5

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