Facts
- The US100 saw a downward correction that pushed the contract 4% below its highs.
- The RSI indicator on a weekly interval (14) is currently at 47.5 points, the lowest since the beginning of the month.
Recommendation
Long position on US100, at market price
- Stop loss: 22 800
- Take profit: 24 055
Opinion
The US100 recorded a downward correction, bringing prices down approximately 4% below recent highs, while the RSI (14) on the weekly interval fell to 47.5 points, which may signal potential for a rebound, especially since we saw a similar pullback at the beginning of the month, after which the upward trend resumed. However, market fundamentals remain strong, with as many as 80% of S&P 500 companies exceeding revenue forecasts and the scale of positive surprises being the largest in many years. The technology sector and artificial intelligence companies in particular are supporting earnings growth and further market capitalization growth in the US. In the second quarter of 2025, earnings (EPS) of S&P 500 companies increased by 11.8% year-on-year, and further growth of 9-10% is forecast for the whole of 2025. Therefore, we recommend taking a long position on the US100 with a target price of 19,200 points and a stop loss order at 17,850 points. At the same time, we recommend caution, as the US100 remains an instrument with increased volatility, which may lead to dynamic price fluctuations.
Source: xStation
