- Despite positive soundings from the US-Sino trade talks over the weekend, early US equity market strength at the very start of this week quickly faded with significant selloff on Monday.
- Subsequent consolidation activity has been unable to allow the major US equity averages to claim back significant upside territory, leaving markets exposed to further losses.
- Here we focus on the US benchmark average, the S&P 500, already surrendering Monday’s low and aiming still lower into today.
S&P 500 E-Mini risks shifting to the downside
A setback Wednesday and now through our 2767.5 support overnight resuming negative forces from Monday’s significant selloff from a new cycle high, to switch the bias back lower for Thursday.
The late January push above 2690.5 shifted the intermediate-term outlook to bullish.
- We see a downside bias for 2763/61; break here aims for 2750.0 and maybe 2741.5.
- But above 2783/84 opens risk up to 2792.75 and 2799.0.
Intermediate-term Outlook – Upside Risks: We see an upside risk for 2819.0/31.25.
- Higher targets would be 2953.25 and 2600.0
- What Changes This? Below 2680.75 shifts the outlook back to neutral; through 2622.5 is needed for a bear theme.
4 Hour Chart