S&P 500 Fundamental Analysis – Forecast for the week of September 19, 2016

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Published: Sep 17, 2016, 06:48 UTC

The S&P 500 will enter a crazy week at 2139.17 and is a strong buy as traders expect the markets to recover after the FOMC decision. The strength of

S&P 500 Fundamental Analysis – Forecast for the week of September 19, 2016

The S&P 500 will enter a crazy week at 2139.17 and is a strong buy as traders expect the markets to recover after the FOMC decision. The strength of the US dollar is weighing on equities while many traders moved to the sidelines ahead of this week’s major events. The index is down remains up 9.25% for the year and gained 0.53% this week but actually was trading at 2188 just a week ago.

US stocks ended Friday lower after oil prices and a spat involving Deutsche Bank saw investors flee energy and banking stocks – but resilient on the week. The S&P 500 bellwether closed down 0.4% at 2,139. Although it had been a rollercoaster ride of a week, with Fed speakers giving and removing hope of rates staying on hold next week, and data and oil prices that added to the gyrations, the top index ended just 21 points lower than where it closed last Friday – in the wake of Fed Hawk Eric Rosengarten’s comments.

Range Resources Corp was the top faller, of 5.1% to $37.38 after the company announced the completion of its merger with and acquisition of the stock of Memorial Resource Development Corp. followed by Oracle down 4.8% at $38.92.

Germany’s largest lender Deutsche Bank which faces a $14bn settlement claim from the US in respect of accusations it packaged toxic mortgages between 2005 and 2007. The subprime mortgage credit crisis that consumed Wall Street and interbank markets, and led to the Eurozone sovereign debt crisis, had its origins in 2007.

US tech giant Apple has added some US$50bln to its market value amid positive reviews and strong pre-order sales of the iPhone 7. Shares in the tech firm gained 3.5% yesterday, after climbing 2.2% and 2.4% on Monday and Tuesday respectively.

The iPhone 7 is set to hit shelves around the world tomorrow (Friday) and despite initial fears, it seems investors are becoming more optimistic about Apple’s latest offering.

Bullish talk around pre-orders from big US wireless carriers like Sprint and T-Mobile has helped to drive investor sentiment as well as the share price.

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This Week’s Economic Events That You Should Be Monitoring:

Date	Country	Name	Volatility	Previous
9/20/2016	AUD	RBA Meeting’s Minutes	3
9/20/2016	CAD	BoC Governor Poloz	3
9/21/2016	AUD	Mid-Year Economic Outlook	3
9/21/2016	JPY	BoJ Interest Rate Decision	3	-0.1
9/21/2016	JPY	BoJ Monetary Policy Statement	3
9/21/2016	JPY	BoJ Press Conference	3
9/21/2016	USD	FOMC Economic Projections	3
9/21/2016	USD	Fed’s Monetary Policy Statement	3
9/21/2016	USD	Fed Interest Rate Decision	3	0.5
9/21/2016	USD	FOMC Press conference	3
9/21/2016	NZD	RBNZ Interest Rate Decision	3	2
9/22/2016	EUR	ECB President Draghi’s Speech	3
9/23/2016	AUD	RBA’s Governor Lowe Speech	3