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Hugo in HTO Trading,

Usa500: Ready for a bigger correction

U.S shares closed lower on last Friday, as investors monitored developments in Russia due to new rounds of sanctions and looked ahead to an important U.S. Federal Reserve meeting this week.

This week market should exercise caution about two potentially market-moving events, the highly anticipated Federal Open Market Committee (FOMC) meeting, with speculation mounting about a possible earlier-than-expected policy shift from the central bank and the September options expiration.

The Usa500 fell during the course of the last Friday session testing the 1,979 daily support and closing near the low showing signs of weakness in the uptrend. The market looks as if is ready to continue to give away its gains despite a rise in monthly retail sales and consumer confidence.

Expecting downward move to 1,959.62 on a break below daily resistance at 1,979 (scenario 1) or a break above daily support at 1,985.25 could push Usa500 to a daily resistance at 1,998.50.

Usa500 is a CFD written over S&P500 futures.