S&P 500 Index Weekly Forecast and Technical Overview
Following the FOMC meeting, Trump’s announcement that they will impose a 10% tax on China Products of 300 billion $ USD, and that it will take effect as of September 1, has triggered the trade wars again. In addition, it was stated that the rate of 10% may reach up to 25% in the future.
Global Indices are under heavy bearish pressure because of:
· The FED, which does not satisfy markets with further rate cuts
· Re-flaring trade wars,
· China is likely to intervene in the Yuan.
This suggests that we may not be in a very good period to invest in global stock indices.
Technically, when we look at the SP 500 Futures active futures contracts, the weakness in the buying appetite may be about to return to a new sell-off with the current developments.
S&P500 ended the week at 2932.
Gradually weakening appetite for new peaks on monthly charts is obvious.
On the monthly chart, a bearish Doji candle is remarkable.
Price is testing the SMA100 daily and below EMA50. Breakout of SMA100 support would trigger the bearish move.
As I have been published in my SP500 Trade Setup and Technical Overview of H4 Chart, we may see a retracement towards 2960.
Potential pullbacks can be used as a selling opportunity. And the daily closings below SMA100 2900 will offer us fresh selling opportunities.
We expect the index to test 2810 and 2723 medium term.
Fundamentally, there is only one thing that can change this view: PRESIDENT TRUMP. A new tweet from Trump who measures his presidential performance with the fact that stock markets historical peaks!
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DISCLAIMER: This is a technical analysis study, not advice or recommendation to invest money
S&P 500 Index Weekly Forecast and Technical Overview: Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these securities. You should do your own thorough research before making any investment decisions. Chartreaderpro does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Forex involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility