The SPX is Weak

The SPX Falls as Trade Worries Resume

Posted Wednesday, January 23, 2019 by
Rowan Crosby • 1 min read

Equity markets have been grinding higher recently, however, some of the fears that have been around of recent times reared their heads once again.

There were reports in the UK media, that the US-China trade deal was getting nowhere and that the US declined to meet some more delegates from China as a result. That helped push markets lower before the report was refuted and we saw a bounce.

At the moment, there really just appears to be little by way of clarity of what exactly is going on with the negotiations.

The doubt around the process is as much as a concern as the underlying issues are trade themselves. Either way, US equities finished in the red. However, in early Asian trade, there is some strength coming back in and futures are pushing higher along with Asian equities.

So far today the ES is up  8.5 points or +0.32%.


Technical Outlook

The SPX is holding 2600 although we have failed to test the 2700 level, which is basically the 50% retracement from the highs pre-sell off. 2600 appears to be the key level once again and we will wait and see how we develop over the course of the week.

S2 is now 2500, with R1 at the 2700 level.

SPX – 240min.
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