Wall Street remained under pressure at the start of the second week of October, where S&P 500 index fell as the deadlock is still there regarding the easing of the country’s debt ceiling by the lawmakers in order to avoid default. The index is currently trading at the 1679 level, whereas the Dow Jones index dropped down to the lowest level of this month, and is currently hovering at 14,936 level where sellers are in control apparently.
As mentioned in our earlier analysis, it is always good to sell the S&P 500 index as long as it sustains below 1695 or the 1703 level; therefore, sellers are making the most of the favorable technical levels where they are selling on tops whenever the price bounces back up.
Bank of America shares plunged by 1 percent on Monday, while Alcoa Inc. also lost the same percentage value on its stocks as it is set to release its third quarter results on Tuesday where investors are wary of the fact that the company may not throw satisfactory data outcome.
However, on the flipside, Apple stocks gained considerably by 1.6% in the U.S. session after its stocks were upgraded by Jefferies Group LLC that gave hope to the investors to go long once again. Moreover, the stocks are now hovering above its critical support levels on its 1-hourly and 4-hourly charts and might head up further where bulls would love to see the shares trading above $500 level.
Gold Lost its Way
Speculations are still surrounding in the gold market regarding the non-farm payrolls data that was apparently set to be released this week, but this has to be confirmed in a day or two as to when the U.S. would be unveiling its critical data. The government shutdown is certainly causing them hindrances in running certain parts of their institutions where the investors – be they are in the stock market or gold market – are confused and hence keeping a little bearish biasness.
Talking about gold, it is still in the range-bound area and is trading at 1322, where traders are suggested to long the metal when it sustains above 1345 or short it when it moves below the 1292 support level.
To contact the reporter of this story: Jonathan Millet at email@example.com