S&P500: Who will win the tug of war, bulls or bears?
The S&P has been struggling of late to sustain any rally above the 3000 handle and as a result, showed two clear rejections giving us potentially a nice double top. The market took a slight dip this morning on headlines that China was not willing to negotiate on any of USA key points of negotiation. China trade talks are set to resume this coming Thursday but with the above message sent out earlier optimism is thin on the ground.
Technically, the picture on the S&P is pretty bearish in my opinion. Two clean rejections off the 3000 level and a change of structure on lower time frames have given us a break and re-test of 2945/2950 now resistance area. Any mini retaliation from Trump could send the index lower and put trade talks into question for Thursday. Powell speaking today and tomorrow as well to add to the mix to cement this months rate cut, but the market has pretty much priced this in fully.
A break and closure above 2950 on the daily timeframe would negate this idea, 4-hour chart below....