S&P is trapped within narrow trading range as traders await the Trump’s administration activates tariffs on Chinese goods worth around $34 billion on Friday, which is widely expected to trigger a tit-for-tat response from Beijing. Technical pressures are building up as the market dances its way into an increasingly tight trading range. S&P’s 2700 marks the inflection point. A failure to hold above key level indicates a change in sentiment and a much deeper pullback should be expected
Tag: Energy Select Sector SPDR Fund
S&P’s rally stalled near key price level. The index could signal a downward trajectory, depending on how it closes over the next few days. Initial support is defined by the lower boundary of the pink band, around 2485. If it closes below that level, the next leg is likely lower, and we’re looking at 2553, based on the trend channel moving average
S&P developed a high volatility with fast up and down moves between 2490 and 2510. Volatility has been increased as the index fell below the important sentiment 2500 mark. While there is a low probability of a full blow correction we remain near term negative for S&P as we believe market vulnerable to some downside retracement over the short-to-intermediate term
technical pressures are building up as the market dances its way into an increasingly tight trading range. Traders should keep an eye on the trend channel moving average, S&P has 2346 to trade against it. If that were to break, it could see 2300 next.
our indicators suggest that the S&P reached an important near-term low on April 25 and has now embarked on a rally that should, at least, test the 2116-2135 zone, based on the November 2015 and the bull market high set in May 2014.