Trade war pause benefits S&P 500

Russell Shor, CFTe, MFTA FXCM

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.

Author

Russell Shor, CFTe, MFTA

FXCM

Russell Shor (MSTA, CFTe, MFTA) has an Honours Degree in Economics from the University of South Africa and holds the coveted Certified Financial Technician and Master of Financial Technical Analysis qualifications from the Interna

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