Are Cracks Starting to Appear in US Equity Markets?

Equity markets have rallied strongly this year with the S&P 500 rising a record 7.9% in January and the Dow not far behind.

Stocks Have Dived

Equity markets have rallied strongly this year with the S&P 500 rising a record 7.9% in January and the Dow not far behind.

All that came to an end yesterday, as the tensions between the US and China once again started to show up.

White House Economic Advisor Larry Kudlow, suggested that the US and China are still some ways off a deal and that led to a big sell-off.

The SPX was down -1%, while oil took a big fall with a -2.4% tumble.

Heading into the weekend, there might be some cause for more selling as well. Asian equity markets remain weak and haven’t been able to reclaim the lost ground.

So far today the ES is down -0.36% and holding neat the lows in Asian trade.

 

Technical Outlook

The SPX is still holding above the 2700 level although we will likely be in for a big test of that mark in US trade.

The round number levels are the major focus at the moment and obviously, 2600 is next off the bat.

2700 has been a strong level and with little by way of economic data today there is a chance to hold on.

SPX
SPX – 240min.
ABOUT THE AUTHOR See More
Rowan Crosby
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.

Related Articles

Comments

0 0 votes
Article Rating
Subscribe
Notify of
0 Comments
Oldest
Newest Most Voted
Inline Feedbacks
View all comments

HFM

Doo Prime

XM

Best Forex Brokers