Slowdown on the U.S. stock market is explained by the approach of May, in anticipation of which investors' confidence in the future growth traditionally declines. It is worth noting that the market is stimulated both by positive macro data and positive course of corporate reporting season in the U.S.. It should be noted that part of the growth of macroeconomic indicatorsis caused by the posponed demand which has arisen in connection with the anomalous cold weather in North America.
A negative factor for markets can become the escalation of the conflict in eastern Ukraine, but we expect to reduction of tension in the coming months.
Futures on the S&P500 index are trading around 1870 and are close to the upper limit of the local downstream channel. We recommend to open short positions with a stop above the nearest local maximum at 1874 and targets at 1840 and 1813. We maintain a long-term negative outlook on the U.S. market.
Wish you the profits!
FXFINPRO Capital Analytical department.