On analysis of the movements of S&P 500 in different time frames, I find that the growing concerns over escalating Sino-U.S. tariff trade war and weak economic data showing a fall in U.S. retail sales for the first time in seven months in September looks evident enough to keep the S&P 500 under bearish pressure during the upcoming weeks. I find that if the S&P 500 remains unable to defend the important support level at 2988, steep fall may be seen shortly; which may drag-down S&P 500 up to the level of 2929 before the weekly closing.
No doubt that the U.S. equity markets have come under pressure after the U.S. House of Representatives on Tuesday passed legislation related to pro-democracy protests in Hong Kong, while data on Wednesday showed a fall in U.S. retail sales for the first time in seven months in September. I find that the falling demand may extend exhaustion in S&P 500. On the other hand, the U.S. President Donald Trump on Wednesday said he likely would not sign any trade deal with China until he meets with Chinese President Xi Jinping at the upcoming APEC Forum in Chile https://www.investing.com/news/economy/trump-says-likely-wont-sign-china-trade-deal-until-he-meets-with-xi-1997147
Finally, I conclude that this statement from the U.S. President to delay in taking final decision may extend uncertainty in global equity markets amid growing bearishness. Watch my videos on S&P 500.
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