Global equities plunge on trade deal threat – S&P 500

Intermediate
  • Despite solid rebounds for US and global equity averages on Friday 3rd May after the US Employment report, comments on Sunday 5th May from President Trump, regarding further tariffs on Chinese goods, have sent equity markets south today.
  • This negative price action has reinforced negative price signals after the FOMC statement on Wednesday 1st May and leaves risks lower, both short-term and maybe on an intermediate-term basis.
  • Here we spotlight the future on the broad, US benchmark index, the S&P 500.

S&P 500 E-Mini topping theme reinforced 

A surge higher Friday to reject Thursday’s selloff through the key 2914.25/10.25 support area, BUT a very aggressive plunge lower this morning through 2901/00 and 2889.5/85.25 supports has reinforced the topping pattern evident from early May and keeps risks back lower for Monday.

The late January push above 2690.5 shifted the intermediate-term outlook to bullish, BUT risk is growing for an intermediate-term shift to neutral below 2877.25.

For Today:

  • We see a downside bias for 2883.5 and key 2877.25; break here aims for 2861.5.
  • But above 2905/06 opens risk up to 2917.75.

Intermediate-term Outlook – Upside Risks: We see an upside risk for 2961.25 and 3000.0

  • What Changes This? Below 2877.25 shifts the outlook back to neutral; through 2726.5 is needed for a bear theme.

4 Hour S&P 500 Chart

s&p 500

Comments on this analysis

Your email address will not be published. Required fields are marked *


Latest News

GBPUSD Chart 2019-08-22
GBP catches a solid bid – breaks above Median Andrew Pitchfork line

Sterling jumped on Thursday after Germany’s Angela Merkel says Brexit backstop solution is possible by October 31st. In response GBP/USD pushed to its highest since late July, breaking above the median line of a bearish Andrews Pitchfork. Close above 1.2249/50 could allow GBP to continue higher, targeting the following key upside levels:  c.1.2335 – Upper … Continued

4 hour DAX
Stock indices poised for more positive signals

A firm recovery tone has been seen across global stock markets since the end of last week, that continued into Wednesday’s release of the FOMC Meeting Minutes, from when the Fed cut rates in late July. This positive price action has been a reflection of a lack of escalation on the trade war and if … Continued

Monthly ESTX 50
DJ EuroStoxx 50 (Eu50) Futures – 20190822

Recap EuroStoxx we wrote: First resistance at 3358/62 but above here allows a retest of 3375/80. A break higher today meets a selling opportunity at 3390/3400, with stops above 3410. We hit the selling opportunity & topped exactly here but no sell off yet to offer a profit on shorts. Daily Forecast – 22 August … Continued

Crude oil daily 2019-08-21
Crude OIL – Triangle Pattern on Energy Points Lower!

Hello fellow traders, A bigger triangle as part of a three-wave A-B-C reversal can be unfolding on crude oil in wave B. Now we are tracking final stages of a triangle, so be aware of a drop once final leg E of a triangle fully shows up. A drop below the lower triangle line would … Continued


Forex Brokers in your location