On analysis of the movements of stocks, in different time frames, I find that S&P 500 still looks fearful of a global economic slowdown despite growing hope of partial trade deal between the United States and China this month. No doubt that investors remain cautious about efforts made from both sides to ease trade tension, as the S&P 500 is still trading below its immediate stiff resistance at 2929; amid ‘Ichimoku Cloud’ in a daily chart, which seems like it may remain exhausted through October 17, 2019.
No doubt that both partners of the trade deal are showing extreme eagerness to resolve their year-long tariff tussle at an early date, but on their own terms; which enhance the probabilities of hick-ups to come forward to seal a final deal.
Finally, I conclude that the S&P 500's swinging moves since September 23 has resulted in extreme volatility, which further extends fear of a global economic slowdown. No doubt that gold's steady price still shows the growing uncertainty in global equity markets.
Watch my video on expected S&P 500 trading zones below.
Trading Strategy: Short Position
Entry Level: 2920 – 2925
Stop Loss: 2929 – 2934
Target: 2879 – 2969
Risk/Reward: 1:8
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