US500 back near 2650 after Tuesday’s sell-off
Stock markets have bounced but recent rally facing first real test
JP Morgan’s Dimon: US-China will extend trade deal deadline
There’s been a pretty decent recovery in stocks after some heavy selling yesterday with the US500 now back near the 2650 level after bouncing from a low of 2617. Tuesday’s selling accelerated after the FT reported that the Trump administration turned down an offer to hold preparatory talks with China, in what was a bit of a wake-up call for investors who have conveniently let this issue slip towards the back of their minds in recent weeks. It is worth pointing out that despite some positive rhetoric earlier this month, there has been little tangible progress made on the trade front between the world’s two largest economies.
After some heavy selling there was a decent pop higher into last night’s Wall St. close and this has seen some follow through to the upside today. However, price is now running into resistance around the prior swing level near 2658 with the last M30 candle pretty ugly for longs. Source: xStation
There’s not much by the way of positive fundamental news to support the recovery, although there have been some upbeat remarks from JP Morgan boss Jamie Dimon in Davos. J.P. Morgan CEO Jamie Dimon said Wednesday he thinks the U.S. and China will reach an interim agreement before the March 2 deadline to end their tariff cease-fire. “I think they’ll get enough done – kind of agreements in principle” to extend the deadline, Dimon said on CNBC’s “Squawk Box” at the World Economic Forum in Davos, Switzerland. “If you have tariffs put in place on March 1, that would be bad for the global economy.”
The US500 recently pulled back to the 10 period EMA and found buyers step into keep price above the short-term trend identifier. This metric now resides around 2617 and could be seen as key support. 2676 possible resistance. Source: xStation