S&P500 Analysis: Donald Trump to Issue New US China Tariff

Global indexes dropped as President Donald Trump imposed tariff on $200 Billion of Chinese goods. Here are the S&P500 technical analysis and the brief overview about the US China tariff

18 September, AtoZ Markets – The consequence of U.S. President Donald Trump’s decision to impose 10 percent tariffs on $200 billion of Chinese goods, ratcheting up to 25 percent in January plunged the global markets. The decision initially hit the US Stocks, Treasuries and the US Dollar and further the Chinese Indexes, Yuan was effected by the new tariff as well. Moreover, the decision will not impact the high-tech goods such as Apple Watch and AirPods headphone during the next round of tariffs that are to be imposed on Chinese goods. Additionally, today the US Futures points out to open higher on Wall Street, with the oil prices rising above $79 per barrel.

S&P500 Weekly Technical Analysis

Yesterday, the S&P500 Index ended in the red below the $2900 mark. According to the weekly charts, the S&P500 declined slightly after the US-China trade war. Yet, the long-term SMA100 sits above the SMA200 level which signals that the path of least resistance is ascending. However, the gap between SMA100 and SMA200 seems to be slightly small on the daily charts. Thus, a significant bearish pull could be seen when the market opens today. Also, the STOCH(9,6) and William %R signals the S&P500 got overbought in the weekly timeframe.

If the index fails to sustain the weekly S1 support level towards the $2878 zone, than a bearish break towards $2850, $2830, $2800 might be seen in few days.

On the 1H chart

  • The relative strength index(14) value is 38.318 which signals “SELL.”
  • The CCI(14) valued at -134.28 which again signify selling signal in 1H chart.
  • The MACD(12,26) – selling signal in daily charts.
  • Moreover, according to ATR(14), the BTCUSD pair is Less volatile.

In my opinion, the S&P500 Index might open at slightly lower levels, and the bearish pressure could be noticed today.

S&P500 Weekly Pivot Points

The S&P500 Index has a significant weekly support near $2878 level and resistance near $2919 level.