Most Popular
1. THE INFLATION MONSTER is Forecasting RECESSION - Nadeem_Walayat
2.Why APPLE Could CRASH the Stock Market! - Nadeem_Walayat
3.The Stocks Stealth BEAR Market - Nadeem_Walayat
4.Inflation, Commodities and Interest Rates : Paradigm Shifts in Macrotrends - Rambus_Chartology
5.Stock Market in the Eye of the Storm, Visualising AI Tech Stocks Buying Levels - Nadeem_Walayat
6.AI Tech Stocks Earnings BloodBath Buying Opportunity - Nadeem_Walayat
7.PPT HALTS STOCK MARKET CRASH ahead of Fed May Interest Rate Hike Meeting - Nadeem_Walayat
8.50 Small Cap Growth Stocks Analysis to CAPITALISE on the Stock Market Inflation -Nadeem_Walayat
10.Apple and Microsoft Nuts Are About to CRACK and Send Stock Market Sharply Lower - Nadeem_Walayat
Last 7 days
The NEXT BIG EMPIRE WILL BE..... CANZUK - 25th June 22
Who (or What) Is Really in Charge of Bitcoin's Price Swings? - 25th June 22
Crude Oil Price Forecast - Trend Breaks Downward – Rejecting The $120 Level - 25th June 22
Everyone and their Grandma is Expecting a Big Stocks Bear Market Rally - 23rd June 22
The Fed’s Hawkish Bite Left Its Mark on the S&P 500 Stocks - 23rd June 22
No Dodging the Stock Market Bullet - 23rd June 22
How To Set Up A Business To Better Manage In The Free Market - 23rd June 22
Why Are Precious Metals Considered A Good Investment? Find Out Here - 23rd June 22
UK House Prices and the Inflation Mega-trend - 22nd June 22
Sportsbook Betting Reviews: How to Choose a Sportsbook- 22nd June 22
Looking to buy Cannabis Stocks? - 22nd June 22
UK House Prices Momentum Forecast - 21st June 22
The Fed is Incompetent - Beware the Dancing Market Puppet - 21st June 22
US Economy Headed for a Hard Landing - 21st June 22
How to Invest in EU - New Opportunities Uncovered - 21st June 22
How To Protect Your Assets During Inflation - 21st June 22
AI Tech Stocks Current State, Is AMAZON a Dying Tech Giant? - 20th June 22
Gold/Gold miners fundamental checkup - 20th June 22
Personal Finance Tips: How To Get Out Of A Tough Financial Situation - 20th June 22
UK House Prices Relative to GDP Growth - 19th June 22
Will Global Markets Be Pushed Deeper Into Crisis Event By The US Fed? - 19th June 22
Useful Things You Need To Know About Tweezer Top Candlestick Pattern - 19th June 22
UK House Prices Real Terms Sustainable Trend - 17th June 22
Why I’m buying the “new” value stocks… - 17th June 22
Optimize Benefits from R&D in Software Product Development with an R&D Tax Credit Software - 17th June 22
Want To Save On Your Business Energy? Here Are Some Helpful Tips - 17th June 22

Market Oracle FREE Newsletter

How to Protect your Wealth by Investing in AI Tech Stocks

Trade War Escalation Put Selling Pressure to S&P 500 (SPX)

Stock-Markets / Stock Markets 2019 Aug 27, 2019 - 02:11 PM GMT

By: ElliottWaveForecast


Last week, there was anticipation of market volatility as the Fed’s Chairman Jerome Powell was scheduled to speak at Jackson Hole. President Trump and China however stole the show. China introduced fresh retaliatory tariffs on $75 billion of U.S. imports, targeting politically sensitive products. President Trump immediately responded. Trump announced in twitter the existing 25% tariffs on $250 billion Chinese goods will rise to 30% on October 1. In addition, the 10% tariffs on another $300 billion Chinese Goods will rise to 15% instead on September 1.

In a series of Tweet storm, Trump also accused Powell of a bigger enemy than China’s President Xi Jinping and issued an order to American companies to get out of China.

“Our great American companies are hereby ordered to immediately start looking for an alternative to China, including bringing your companies HOME and making your products in the USA,” Trump wrote. The move came after the market closed and before Trump departs to G7 summit in France.  The National Retail Federation issued a statement on Friday saying that the tariffs approach is not working.

On Sunday at the G7 summit however, President Trump said that he has a second thought on escalating the trade war with China. The G-7 leaders seem to have successfully nudged the President gently to dial down his aggressive stance against China. It remains to be seen if Trump withdraws his threats last Friday, whether fully or partially. In the meantime, one thing for certain is that the market will continue to be uncertain and volatile.

S&P 500 Longer Term View

It remains to be our call that the cycle from 2009 low is mature and S&P 500 should soon pullback in wave (IV) in larger 3 waves at least. As we said in the previous article, a yield curve inversion in the past precedes a recession by about 2 years in time. Therefore, we still can not rule out one last rally in wave (V) later before the biggest pullback happens. The alternate view suggests the rally in S&P 500 is in a 3 waves (a)-(b)-(c) zigzag and in this case the biggest pullback is already due.

S&P 500 closed below 2018 trend line

The bulls tried to hold above the 2018 ascending trend line last week but failed to do it. The Index has now decisively closed below the trend line. If the Index has started to do the wave (IV) pullback as the first chart suggests, then it can potentially go to 2125 – 2470 as the next potential strong support. This is the 23.6 – 38.2 Fibonacci retracement from wave (II) low in 2009 . It also has the support of the ascending trend line and 200 weekly moving average.

Short Term S&P 500 Outlook

Short Term outlook in S&P 500 (SPX) suggests further downside is likely. The view will get further confirmation if the Index is able to break below August 5 low (2822) next week. Once August 5 low breaks, the next short term minimum target is 2610 – 2736. With weekly close below the trend line from 2018 high, the odd suggests for further downside in coming weeks.

For further update in S&P 500 and other stocks, ETF, forex, or commodity, you can try our 14 days FREE trial.

By EWFHendra

ElliottWave-Forecast has built its reputation on accurate technical analysis and a winning attitude. By successfully incorporating the Elliott Wave Theory with Market Correlation, Cycles, Proprietary Pivot System, we provide precise forecasts with up-to-date analysis for 52 instruments including Forex majors & crosses, Commodities and a number of Equity Indices from around the World. Our clients also have immediate access to our proprietary Actionable Trade Setups, Market Overview, 1 Hour, 4 Hour, Daily & Weekly Wave Counts. Weekend Webinar, Live Screen Sharing Sessions, Daily Technical Videos, Elliott Wave Setup .

Copyright © 2019 ElliottWave-Forecast - All Rights Reserved Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cann

© 2005-2019 - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.

Post Comment

Only logged in users are allowed to post comments. Register/ Log in