The SPX Might Be Weak Today

SPX: Buy the Dip

Posted Wednesday, July 11, 2018 by
Rowan Crosby • 1 min read

US equity markets have, for the most part, shaken off the ongoing trade war sagas. On Wednesday though, the second round of tariffs has hit the headlines and only time will tell as to whether they can withstand even more pressure on the SPX.

I’m bullish on US stocks. I feel that the economic data overall is really on the improve. We’ve seen strong jobs growth last month, improving retails sales and generally strong economic conditions.

For everything that Trump has done, that is perceived as bad, such as starting a trade war. He’s also done things like cut corporate tax rates.

So the trend is up in the SPX and rightfully so.

 

Technical Outlook

Looking at the 2SD regression channel from 2016-today, we appear to be bouncing off our first target of 2,800. I still think the 2,900 level is the place to watch for going forward.

However, as US traders start their day with more headlines on tariffs. We might very well sell-off.

I’m a buyer at 2,700, that’s for sure. I think at the least we can ride the bottom end of this channel higher.

We might not be breaking out to the upside just yet. But I’m going to be buying the dip on Wednesday especially if the news helps us get a good entry.

SPX
SPX – Daily

SPX – Daily Chart.

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About the author

Rowan Crosby is our Asia-Pacific Analyst
Rowan Crosby is a professional futures trader from Sydney, Australia. Rowan has extensive experience trading commodities, bonds and equity futures in the Asian, European and US markets. Rowan holds a Bachelor of Finance and Economics degree and is focused heavily on Investment Finance and Quantitative Analysis.
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