Global macro overview for 24/03/2017:
The main political and economic issue is the future of the Obamacare health program. During the presidential campaign, Trump promised to change the current health system in the US that is not working very well in his opinion. The voting should have taken place yesterday, but the Republican Party did not find enough support to dismiss Obamacare. As a result, voting in the House of Representatives has not taken place yet. Trump puts the ultimatum and tends to vote on Friday. He warns that either the Republicans will support the bill in its current form, or Obamacare will continue to function like it is now. The most important conclusion from this whole situation is the fact that the President is struggling to push his bill has raised doubts over whether he can win support for his pro-growth economic policy measures.
Let's now take a look at the SPY (SP500 ETF) technical picture at the H4 time frame. The series of higher highs and higher lows had been terminated at the level of 240.22 and since then now lows has been made. The technical resistance at the level of 235.32 is the key resistance now as any break out above it will open the road to test the recent swing high. On the other hand, if the Healthcare Bill will not pass today, then the market might extend the drop towards the next technical support at the level of 229.80.
*The market analysis posted here is meant to increase your awareness, but not to give instructions to make a trade.
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