Chart of the Day US500 (S&P500)
Pivotal Test US500
Another risk off session after the overnight Wall Street slump amid growing fears about the spread of covid19 in South Korea and Italy. The S&P500 saw it’s largest decline since February 2018, whilst UST bonds rallied further with the 10-year yield testing 1.35% intra-day before closing at 1.37%.even though US Treasury secretary Mnuchin opined that the covid-19 is unlikely to have a material impact on the Phase 1 trade deal. Italy in particular risks slipping back into recession with the latest Covid-19 outbreak.
COVID-19 concerns continue to dominate headlines around the world, after cases are seen spiking in South Korea, Italy and the Middle East, which sparked fears of further spread beyond China. Speaking at a news conference in Geneva, World Health Organization (WHO) Director-General Tedros Adhanom Ghebreyesus said a sudden increase in coronavirus cases in Italy, Iran and South Korea were “deeply concerning” but for now authorities were not seeing an uncontained global spread of the virus or witnessing widespread serious cases or deaths. “The key message that should give all countries hope, courage and confidence is that this virus can be contained, indeed there are many countries that have done exactly that,” he said at the news conference.
From a technical & trading perspective the US500 is testing pivotal symmetry swing support sighted at 3223 as this area contains the downside there is the potential to set a base, which will only really be confirmed ona close back above 3340. However a failure to set a corrective platform from this area will likely see another leg lower to challenge the next pivotal symmetry swing support level sighted at 3144, where once again bulls will look to form a platform to build a base to take prices higher to ultimately challenge and exceed the prior cycle. A failure to find support from the secondary symmetry swing support would likely suggest a more meaningful cycle high is in place and likely see the downside move extend to test the yearly pivot point from above, testing bids back below the 3000 level
Disclaimer: The material provided is for information purposes only and should not be considered as investment advice. The views, information, or opinions expressed in the text belong solely to the author, and not to the author’s employer, organization, committee or other group or individual or company.
FREE ACCOUNT MANAGER WITHOUT ANY COST. FOR MORE DETAILS.>>> CLICK HERE.
Roz has been engaged in the financial markets since 2017, specializing in Foreign Exchange, Before joining to FOREX IN WORLD she start to learn forex trading related information.
CLICK THE FOLLOWING LINK AND READ AGAIN.