Global Indices Rushed Triplex Loss – What’s Behind This Panic?

The U.S. stock indices SPX, DJIA, and Nasdaq are plunging dramatically nearly 1%. With that, the European stock reacted worse causing 1.46%.

Trump Strikes Again

The U.S. stock indices SPX, DJIA, and Nasdaq are plunging dramatically near to 1%. With that, the European stock reacted badly causing 1.46% drop in DAX, the German’s stock market index. Here the question is, who’s behind it and what’s going on in the market?

With no surprises, it’s the U.S. President Donald Trump who spread uncertainty by saying that he’s not sure if the scheduled meeting with the North Korean leader would really happen.

As you know, the trade war sentiments between China and the U.S. eased after Mnuchin stated negotiators put a potential trade war “on hold”. But Trump seems dissatisfied with the negotiations. Consequently, the VIX (volatility index) has jumped by +7.26%, signifying the fear in investors.

S&P500- SPX – Quick Technical Outlook

Speaking about technicals, the SPX has already come out of the bullish channel which was supporting the index near $2,715. Now it’s heading south to the next target level of $2,700. The thing is, $2,700 isn’t merely a double bottom, but also a psychological level.

 

 

SPX - Hourly Chart

SPX – Hourly Chart

The S&P500 has already entered the oversold zone and needs to retrace back to $2,711 and $2,716. In case of failing to do so, the U.S. index can fall to $2,682 in coming days. Let’s keep an eye on $2,700 to catch a quick buying trade. Stay tuned for forex trading signals. Good luck!

ABOUT THE AUTHOR See More
Arslan Butt
Index & Commodity Analyst
Arslan Butt serves as the Lead Commodities and Indices Analyst, bringing a wealth of expertise to the field. With an MBA in Behavioral Finance and active progress towards a Ph.D., Arslan possesses a deep understanding of market dynamics.His professional journey includes a significant role as a senior analyst at a leading brokerage firm, complementing his extensive experience as a market analyst and day trader. Adept in educating others, Arslan has a commendable track record as an instructor and public speaker.His incisive analyses, particularly within the realms of cryptocurrency and forex markets, are showcased across esteemed financial publications such as ForexCrunch, InsideBitcoins, and EconomyWatch, solidifying his reputation in the financial community.

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