Following the relentless rally throughout last year, the price action in the major US stock market indices over the last six months has felt like purgatory. After seeing a blowoff top to new record highs at 2875, the S&P 500 has been consolidating in a lackluster range between 2600 and 2800 since the start of February, frustrating both bulls and bears alike.
Today’s meeting between President Trump and Russian President Putin is more symbolic than anything. Sanctions, the U.S election meddling and Syria are expected topics, but we are unlikely to find real substance coming from this headline-grabbing summit. Earnings and economic data are the headlines we are paying attention to most closely this morning.
The coming week, starting Monday, July 16, should present more sideways markets than breakouts, although gold and the Eurodollar currently (as of Friday morning on July 13) have pivots with breakout lower setups. Of course, the Eurodollar extreme candle reversal up signal and the gold moving average supports on multiple time frames with bullish candlestick patterns can cause a lower-pivots rejection in each/either symbol. Such a rejection would be bullishly volatile, whilst various groups of traders would, in theory, battle it out.
Less than an hour after the S&P 500 settled at the highest level since February 1st, global equity markets found themselves on the defensive after the White House provided a list and announced it would plan to move forward with a 10% tariff on an additional $200 billion of Chinese goods. This is where things escalate to a trade war and once again, we emphasize at these levels, the market has not priced in a full-blown trade war.
MODERN TRADER explores the effect of a potential trade war on U.S. equity markets. Will it end the bull run or will low interest rates allow U.S. equities to maintain its momentum? Read on. We also attempt to identify the key drivers of active equity hedge funds.
The coming week (July 13) should yield an array of trending bullish breakouts, upticks, and up-to-sideways plays (except bearish-sideways crude oil). How are we going to know which bull trades to take/place that are clear signals or high-probability wins? I don’t know. I can lay out the information I have for informed/educated reader decisions that include the countertrade perspectives.