Trade war pause benefits S&P 500
The S&P 500 is in a mark-up phase. This phase is typically defined by a bullish EMA formation. I.e. the green 5-day EMA > the orange 13-day EMA > the black 34-day EMA. Moreover, the RSI(9) is above 50 and indicative of a bullish momentum.
Therefore, potential price support is lower down with a confluence of factors including the R1 pivot support level, price support (blue rectangle); and the 50% retracement level.
US indices pre-open have rallied on the back of the news that the potential trade war is on hold. Treasury Secretary Steven Mnuchin said that the USA was “putting the trade war on hold.” This follows progress that has been made in talks with China.
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