FxWirePro: S&P 500 likely to correct further towards 2360; interim target 2390

Since reaching a peak on 19th June at 2453.5, US benchmark stock index S&P 500 has been grinding lower. So far it has tested support around 2400 area twice since the peak. While it was able to hold on to the support, we at FxWirePro expect the decline to continue.

Political turmoil in the United States, where Democrats are looking to block Republicans not only on national levels but state and municipal levels too, coupled with weaker than expected job numbers, factory orders report and hawkish rhetoric from the US Federal Reserve has started to take its toll on the S&P 500.

We expect the benchmark index to decline further and first towards 2390 area and then towards a deeper correction around 2360 area.