Despite early bounce today, the trend won’t turn positive until the S&P 500 gets over 2785.
The bounce is still susceptible to failure, particularly due to the Dow Jones Industrials underperforming of late.
We could see weakness into early next week before any low at hand.
For now, the Dow Jones Industrials are trying to avoid its worst 9 day pullback since 1978 while the S&P 500 is hanging around Tuesday’s closing price.
S&P 500 Support / Resistance
2735-45 is important price support, while 2785 is key resistance.
The trend remains near-term mixed, but arguably is still negative into early next week. This bounce will not help drive trends much higher until/unless prices can get above yesterday’s highs-2785. So there’s some work that needs to be done.  Downside support at 2735-45, with maximum downside area at 2709 to buy dips.
Around the market…
The US Dollar is peaking out while rates are trading fractionally higher today.
Early gains in US equity futures and most of Europe, Asia as early week trade tensions now giving way to US attempts to reach out to China to restart trade talks before Trump’s tariffs come into effect next month.
Positive Eurozone data on manufacturing and services data beat analysts expectations, while OPEC striking last minute output deal raising Crude this am and both WTI and Brent higher by 2.3%.
The Dow Jones Industrials striving to avoid its first 9 day loss in nearly 40 years since 1978 while this week (overall for US indices) may still be worst week since March. Materials and Industrials have shown particular weakness… some evidence of these sectors stabilizing is a must to have confidence about a rally into quarter-end.
S&P Daily chart
The chart below shows the extent of most of this week’s churning and despite the huge decline in DJIA and sectors like Industrials, Materials, not much change for the broad S&P 500 index.
If you have an interest in seeing timely intra-day market updates on my private twitter feed, please follow @NewtonAdvisors.  Also, feel free to send me an email at info@newtonadvisor.com regarding how my Technical work can add alpha to your portfolio management process.
Twitter: Â @MarkNewtonCMT
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.
