US tariff hike on Chinese goods leaves equites vulnerable

  • This week we have highlighted the overall “risk off” setting for global stock markets here and here and the imposition of a tariff hike on $200 billion of Chinese goods on Friday leaves this negative outlook very much intact.
  • Again, here we spotlight the US benchmark average, the S&P 500.

S&P 500 E-Mini downside threat to key 2789.5

A plunge back lower Thursday through the late March support gap at 2844.5-40.75, after Wednesday’s lacklustre bounce was capped at 2899.5 (below even our initial, modest resistance at 2908/09), to keep the bias lower for Friday.

The early May push below key 2877.25 support sets an intermediate-term range we see as 2789.5 to 2961.25, BUT with risk growing for a push below 2789.5 for an intermediate-term shift to bearish.

For Today:

  • We see a downside bias for 2849/48, then 2837.0 and 2832.25; break here aims for 2821.25, 2813.75 and 2802.5/00.0, maybe key 2789.5.
  • But above 2870/71 aims for 2889.0 and opens risk up towards 2899.5 and even 2908/09.

Intermediate-term Range Breakout Parameters: Range seen as 2789.5 to 2961.25.

Upside Risks: Above 2961.25 sets a bull trend to aim for 3000.0.

  • Downside Risks: Below 2789.5 sees a bear trend to target 2726.5, 2686.0 and 2627.75.

4 Hour Chart

S&P 500 Chart 2019-05-09

Comments on this analysis

Latest News

Gold Chart
Golden Breakout: Potential for 1,486 for spot gold

We upgrade our neutral conviction on GOLD, mentioned in our prior post, to buy. Yesterday saw a solid 1.3% rise in XAUUSD on the back of a weaker USD, Middle East tensions and Ray Dalio comments. The precious metal broke above key 1,438.63 resistance and a consolidation pattern. A close near the top reinforces bull … Continued

GBPUSD Daily Chart
Elliott wave Analysis: GBPUSD On A Bearish Ride

Hello fellow traders! GBPUSD is looking bearish and can now be unfolding final stages of a sub-wave 3) of blue wave 1. We are observing minor leg 5 of 3) in progress, with possible support, and a turn into a corrective wave 4) around the Fibonacci ratio of 261.8 (1.235/1.223 region). GBPUSD, Daily On the … Continued

Forex News Category
Will Fed Easing Turn Out Like ’95 or ‘07?

You should completely understand that the market is dangerously overvalued and that global economic growth has slowed to a crawl along with S&P 500 earnings. However, you must also be wondering when the massive overhang of unprecedented debt levels, artificial market manipulations, and the anemic economy will finally shock Wall Street to a brutal reality. … Continued

Gold Futures
Gold Getting a Boost as Fed Expresses Concern

As the Fed indicate rate cuts are coming gold will keep rising over the summer  There is a disconnect between asset price inflation and the real economy  Earnings will be flat or disappointing and too much debt has little or negative yield  I last looked at Gold on May 26, 2019 when I called for … Continued

Forex Brokers in your location