Daily Analysis US INDICES 17 May 2023

"Stocks Rise Amid Debt Ceiling Negotiations, Oil Prices React to Macroeconomic Developments, and Crypto Markets Face Regulatory and Liquidity Challenges"

Stock futures rose on Wednesday as investors awaited updates on the negotiations between congressional leaders and President Joe Biden regarding the U.S. debt ceiling. S&P 500 futures gained 0.4%, while Nasdaq-100 futures saw a 0.2% increase

According to the White House, President Biden has instructed his staff to convene daily meetings to address unresolved matters. In light of these ongoing negotiations, the president has decided to cancel the second part of his upcoming international trip. House Speaker Kevin McCarthy expressed optimism, stating that a more effective process has been established for further discussions. He also expressed the belief that reaching a deal by the end of the week is a feasible outcome.

Treasury Secretary Janet Yellen emphasized the urgency of raising the government's limit, reiterating her previous warning. She stressed the immediate need to avoid default, highlighting the looming possibility of defaulting as early as June 1.

The price action on the S&P500 has entered a potential range, reflecting the market's uncertainty. Overcoming the 4200 resistance area poses a significant challenge for the S&P 500. If a breakout occurs, the next resistance level to watch will be 4300, corresponding to the 61.8 Fibonacci level. The Nasdaq built momentum towards the next target of 13700. This level aligns with the 100SMA on a weekly chart and has previously acted as a significant support/resistance level.