The SP500 index was trading marginally higher on Friday morning and was seen hovering around 2,860 USD during the London session, with volatility expected to be elevated throughout the day.
Firstly, US durable goods orders will be released and should deteriorate notably, but on the other hand, the core indicator is seen rising 0.5% month-on-month, up from 0.2% previously.
However, the most importance will be given to today’s Jerome Powell’s speech, who is due to deliver a speech titled “Monetary Policy in a Changing Economy” at the Federal Reserve Bank of Kansas City Economic Policy Symposium in Jackson Hole. This is a usual yearly event and it tends to lead to some hints at the future central bank steps, regarding monetary policy.
Considering the recent Trump very dovish and negative comments about rising rates, investors are preparing for a dovish speech today. Should this happen, the SP500 index could very easily rise to new highs above 2,875 USD.
The first resistance for bulls is at 2,870 USD and if broken, further rise toward 2,880 USD could occur and then the index would have reached new record highs. On the downside, the intraday support is around 2,842 USD and afterward at 2,820 USD, where the short-term bullish trend line is located.