US equity indices look vulnerable to another correction lower

Intermediate
  • 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.

For Today:

  • 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

SP500


Latest News

usdjpy
Yen stays strong in risk off scenario

Last Friday’s very weak German Manufacturing Purchasing Managers’ Index data was another blow to the global economic backdrop, with concerns throughout this year of a global slowdown in China, through Asia Pacific and increasingly also in Europe. This has seen riskier asset classes come under negative forces over the past week into latter March, with … Continued

Euro vulnerability

A Euro plunge in the latter part of last week, on Friday driven by very weak German Purchasing Managers’ Index data. Furthermore, the US Dollar has seen broader strength again on Thursday-Friday against many major currencies, after US$ weakness was seen immediately after a far more dovish Federal reserve at their meeting on Wednesday. This … Continued

EURUSD Still stumbles at the 200-day MA

The Euro was the weakest currency on Friday The EURUSD cannot break above to 200-Day Moving Average There may a small bounce on Monday morning As European slides into recession EURUSD will fall to 1.1000 The 200-day moving average (200 DMA) has continued to prove a stubborn barrier to the upward path of EURUSD. This … Continued

Current Market Analysis
Euro breaks down, GBPCAD threatens upside

US Dollar Index holds support and rebounds EURUSD seeds multiple negative signals, downside risks GBPUSD sends buy signal GBPCAD sets up more bullish AUDUSD negative and USDCAD buy signal USDTRY and USDBRL surge

Leave a Reply

Your e-mail address will not be published. Required fields are marked *


Forex Brokers in your location