The ISM Services came in at its highest level in four months. It printed at 56.9, topping the forecast of 55.4. This beat is a good number, considering the US economy's headwinds - a number over 50 suggests expansion.
The better than expected number has injected a risk-on element (blue arrow) into the SPX500. However, caution is still required. The hourly EMAs remain in a bearish formation, as is the stochastic (black ellipses). Unless these show signs of change, bears may look for short entries on any signs of strength.
Senior Market Specialist
Russell Shor joined FXCM in October 2017 as a Senior Market Specialist. He is a certified FMVA® and has an Honours Degree in Economics from the University of South Africa. Russell is a full member of the Society of Technical Analysts in the United Kingdom. With over 20 years of financial markets experience, his analysis is of a high standard and quality.