Recession fear triggers selloff on S&P500.
“US equities suffered from significant selloff as recession fear make a comeback.”
S&P500 tanked as recession fears grow due to recent release of retail sales data. According to US Census Bureau, Core Retail Sales shrank by -0.2%, way worst than expectation of 0.2%. At the same time, latest survey from New York Federal Reserve Bank shows significant slump in shipments as well as new orders. This brewed risk aversion sentiment in the market, leading a large selloff until today.
Quick recap on S&P500
S&P500 failed to extend its rebound, limited by significant selloff pressure from upside.
S&P500 Weekly Technical Analysis
From weekly perspective, S&P500 retraced gracefully from long-term bearish trendline, signified by depreciating bullish momentum on MACD.
S&P500 Daily Technical Analysis
In terms of daily perspective, the index is currently testing near 3895.74, an important level to further clarify overall downside skewed tendency.
Trading Idea
ORDER: SELL STOP
ENTRY: 3860
STOP LOSS: 3940
Target 1: 3760
Target 2: 3660
ZFX Analyst’s Comment
The index remains bearish skewed as it fails to conquer long-term perspective of downward trendline.
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Risk Warning: The above content is for reference only, and does not represent ZFX’s position. ZFX does not assume any form of loss caused by any trading operations carried out in accordance with this article. Please be firm in your thinking and do the corresponding risk control.
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