Early weakness has the S&P 500 undercutting yesterday’s lows as the stock market pullback continues.
Near-term Trading Outlook: Â Stock market futures look to be closing in on support where a bounce can begin. This decline both in the US (and globally) will bring out some near-term bearish sentiment that can bring a trading low. Market breadth has been actually far less negative than what happened in early February.
Regarding the S&P 500 specifically, there are 2 areas of great importance: Â 2642, followed by 2629. Â Bulls want to see these supports hold.
S&P 500 futures are within a few hours of registering COUNTER-TREND Buy signals which should have some effect at slowing the downside momentum and eventually bringing a bounce later today or on Monday. This can be seen on both 60 minute and 120 minute charts.
The ability to get back over 2682 would be important in suggesting at least a minor trading low in place.
Elsewhere…
The important move this am is the Decline in the US Dollar and likely benefit in Gold, silver and commodities in general.. which should also benefit Emerging Markets. I would also expect China to start outperforming on this (i.e. FXI). Â Seeing EURUSD and GBPUSD bounce. While the economic harm from tariffs might seem small, the perception will likely be detrimental to the US Dollar which may continue lower. Treasuries are also trading lower today.
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Author has positions in mentioned securities at the time of publication. Any opinions expressed herein are solely those of the author, and do not in any way represent the views or opinions of any other person or entity.
