Wall Street analysis: US futures recover, still far below weekly opening levels
|- DJIA at 24,826 from Friday's close at 24,700, S&P up roughly 10 points.
- Trade-war concerns haven't receded could re-take center stage any moment.
Monday's sell-off in equities paused in the previous US session, with Asian and European indexes recovering ground solidly, and pushing US futures up. The slump was triggered by news that US President Trump asked the United States Trade Representative to identify $200 billion worth of Chinese goods for additional tariffs at 10% if China doesn't change its trade practices. Trade fears ebbed for now but given that there was no change in the status-quo, it could return any time, so caution prevails.
The Dow's daily chart shows that the decline stalled at a brink of a bearish breakout, as it held above the 100 and 200 DMA, both anyway directionless and converging at 24,645, the daily low. The index is below its 20 DMA which losses upward strength, while in the mentioned chart, the Momentum indicator heads lower around its 100 level and the RSI aims to recover but at 47, all of which leans the scale toward the downside. The index holds within the limits of a bullish channel that failed to break lower multiple times between March and April.
The S&P daily chart shows that it's recovering after flirting with a bullish 20 DMA earlier in the day, while technical indicators hold in positive territory, although with no certain directional strength. The risk remains leaned to the upside, as long as buying interest keeps surging on dips, with a key support now at 2,732, Monday's low.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.