Forex Analysis & Reviews: 18.10.2022 - US pre-market trade on...

Live Chat

InstaForex Loprais Team - Official participant of the Dakar rally

This section features the most important information about trading with InstaForex. We provide both analysis from leading experts for experienced traders and articles on trading conditions for beginners. Our services will help increase your profit potential.

Become Trader

Account Opening

See also

Trading Conditions

Forex Analytics

Charts

This section is designed for those who are just starting their trading journey. InstaForex educational and analytical materials will meet your training needs. Our experts' recommendations will make your first steps to trading success simple and clear.

Start as Beginner

How to start trading

Useful information

Training and recordings

InstaForex innovative services are an essential element of productive investment. We strive to provide our clients with advanced technical capabilities and make their trading routine comfortable as we are recognized as the best broker in this regard.

Become Investor

PAMM System

ForexCopy System

Passive investments

OYS account

Partnership with InstaForex is beneficial and top-tier. Join our affiliate programs and enjoy bonuses, partner rewards, and the possibility to travel with the team of the world-renowned brand.

Become Partner

Main Page

Partner Area

Advantages for Affiliates

Registration

This section contains the most lucrative offers from InstaForex. Receive bonuses when topping up an account, compete with other traders, and get real prizes even when trading in a demo account.

All Promo Campaigns

Bonuses

Contests

Events

Holidays with InstaForex are not only pleasant but also useful. We offer a one-stop portal, numerous forums, and corporate blogs, where traders can exchange experiences and become successfully integrated into the Forex community.

Full details

Forums

We are in social networks

Forex humour

Forex Portal

InstaForex is an international brand created in 2007. The company provides services for online FX trading and is recognized as one of the world's leading brokers. We have won the trust of more than 7,000,000 retail traders, who have already appreciated our reliability and focus on innovations.

Learn More

History

Why Choose Us

InstaSport

Regulation

Company News

Awards

InstaForex Stars

InstaForex Offline

Headquarters

Key documents

Social Responsibility

InstaForex Loprais Team - Official participant of the Dakar rally

18.10.2022 01:30 PM

US pre-market trade on October 18, 2022. Stocks set to extend gains

US stock futures keep rising on Tuesday, extending their rally from Monday's session. Amid positive corporate earnings results, stock indices began to recover. Meanwhile, the pound and UK's shares slid after the Bank of England explained that the news about delaying and wrapping up the bond-buying program may not be true.

The S&P 500 futures contracts advanced by more than 1% after the Nasdaq 100 index gained 1.7% thanks to Amazon.com Inc. and Microsoft Corp. The Dow Jones Industrial Average is also trading in positive territory. European stocks have also been gaining ground for the fourth day in a row.

The British pound lost 0.6% after the Bank of England denied that it would delay the quantitative tightening program. The yield on the UK 10-year bond rose by seven basis points to 4.04%.

Apparently, new comments by the BoE supported risk assets that began their recovery yesterday amid positive corporate earnings results. Against such headwinds as rising inflation, economic risks, and aggressive policies of central banks, investors wonder what the financial results of the companies will be in the third quarter. It is widely believed that the bear rally that took place last week will continue. The current improvement in the market may be just a correction.

According to the Bank of America survey, the sentiment on stocks and global growth among fund managers shows full capitulation, opening the way to an equities rally in 2023. Analysts expect the stock market to hit bottom in the first half of 2023 after the Federal Reserve finally stops raising interest rates.

Oil remains highly volatile today as traders are trying to figure out what impact the economic downturn will have on demand. Gold is also fluctuating at comfortable levels while Bitcoin has returned to the level of 20,000 dollars per token.

As for the technical outlook for the S&P 500, the index is trying to break above $3,735 in the pre-market trade, continuing its rapid growth from yesterday. It is too risky to buy the asset at the current highs. However, if you follow a medium-term trading strategy, this option is acceptable. As long as the index is trading above $3,699, the risk-on sentiment will persist. This also paves the way for a breakout towards $3,735. Bulls will definitely attempt to break through this level when the main session starts. This scenario will validate a further upside correction towards the resistance area of $3,773. The level of $3,801 will serve as the highest target. In case the asset declines, buyers are very likely to assert their strength near $3,699 and $3,661. A breakout of this range will push the price down to $3,621 and make the test of the support area of $3,579, the new yearly low, more likely.

You have already liked this post today

*Disclaimer: The market analysis posted here is meant to increase your awareness, but not to give instructions to make a trade.