Due to the shortened session on Monday and the lack of trade on Wednesday, the Europeans missed mood swings on Wall Street. As a result, yesterday's risk rally is perceived by investors very carefully, as they still examining the sentiment by the end of the year. The major indices in the Old Continent are balanced around the reference levels.
On Thursday, the 27th of December, the event calendar is light on the important data releases, but there are still the Consumer Confidence report from the US, Unemployment Claims, and New Homes Starts. No speeches are scheduled for today as well.
SP500 analysis for 27/12/2018:
The dramatic collapse in the stock and oil market had old and new guilty parties. In addition to fears of global slowdown and commercial disputes, investors are concerned about the partial US government shutdown (government shutdown) and reports that President Trump has largely blamed the economic crises on the Fed, publicly criticizing President Powell. It fueled speculation that Trump would release Powell. The situation was not improved by the information that Treasury secretary Mnuchin had called the crisis group after the sharp drops on Wall Street.
Let's now take a look at the SP500 technical picture on H4. The market has bounced from the level of 233.69 and broke above the 23% Fibo at the level of 245.00, as the rebound continues. The market conditions are extremely oversold and the momentum is weak and negative. The next target for bulls is seen at the levels of 249.71 (technical resistance) and 252.55 (38% Fibo level). The key technical resistance is still seen at the level of 259.24.
