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S&P500: at the level of support 2045.00 _23/05/2016

Technical analysis and trading recommendations -

On the agenda is the question of investors - whether indeed the Fed to raise rates in June.

Fed officials did not indicate in the FOMC punctures directly about the intention to raise rates in June but made it clear that does not preclude such an action if the incoming economic data show improvement in the economic situation in the US.

The yield on 10-year US government bonds on Friday rose to 1.849%, becoming one of the strongest week since early November.

Also reduces the gold price. June futures for gold at the end of trading on COMEX fell on Friday by 0.2%, to 1252.90 dollars per troy ounce, and the price decline is observed for the third day in a row.

the WSJ dollar index, which reflects the value of the US dollar against a basket of 16 currencies on Friday reached 87.57 (2-month high).

Last week the S & P500 rose 80 points to close near the mark 2052.0. The leader in the index were shares of financial and oil and gas sectors. The first - due to the publication of the Fed minutes, according to which significantly increased the likelihood of higher interest rates in the US in June, the second - because of rising oil prices. On Wednesday, after the publication of the financial sector, the Fed action protocols companies on S & P500 rose 1.9%. The greatest growth in the Dow Jones Industrial Average was led by J.P. Morgan Chase & amp; Co. and Goldman Sachs Group.

Oil prices rose last week by 3.3% to 47.75 dollars, supporting shares of oil companies and contributing to the growth of S & P500, which this week rose by 0.3% after three consecutive negative weeks.

In the expectation of interest rate in the US in June, the US dollar continues to strengthen financial markets and stock indexes - to fall.

However, we should not forget the reservation Fed leaders, reflected in the records, "... if in the 2nd quarter economic data will correspond to the acceleration of economic growth, labor market conditions continue to improve, and inflation will approach the target level of 2%."

Then the situation with growing financial markets the dollar can change to the opposite.

By the way, according to the CME Group, the Fed funds futures indicate is only a 30% chance of a rate hike in June and 55% - in July.

Monday, 23 May, 2016 / 11:30

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