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

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