S&P 500 FALLS BELOW MA50 AHEAD OF TRADE TALKS
S&P 500 futures are currently trading at 2874- lower by 0.39% as compared to the previous close. The index Futures closed in negative territory in the last trading session also.
In the cash markets, the benchmark index inched down 0.21% to 2,873.30 at time of writing. The broad-market index fell below its 50-day moving average, a closely watched level of near-term momentum, during the trading session.
U.S. equities dropped today after the U.S. president said late on Wednesday that China “broke the deal” fueling concerns that the world’s two largest economies will not be able to reach a trade deal before new tariffs go into effect at midnight.
Meanwhile, Chinese vice premier Liu He will dine with U.S. Trade Representative Robert Lighthizer and other U.S. officials later today in Washington, just hours before the new tariffs are levied. According to market sources, Vice Premier Liu is not expected to meet with the US president on Thursday.
Index member Intel plunged 6.28% after the company said it sees both revenue and EPS growth in the “single digit” percentage range over the next three years.
Chipmakers, sensitive to higher tariffs also fell today. Nvidia and Micron Technology lost 1.59% and 1.21% respectively at the time of writing.
Technology shares posted the steepest declines among S&P sectors declining 0.71%
On the other hand, Chevron gained 3.10% after the oil major said it will not submit a new offer to acquire Anadarko Petroleum and will collect a $1 billion breakup fee.
The S&P 500 is down more than 3% for the week.
On the economic front, Initial Jobless Claims released earlier today came in at 228K in the week ended 4th May. Claims figure was above the consensus estimates of 215K.
In addition, PPI (MoM) for April also out earlier today came in at 0.2%. The PPI change was in line with market expectation.
On the technical front, the RSI is currently at 43.38% and suggests that the market can continue trading sideways. The current price is below the MA5. The %K has crossed the % D from above to the downside at around 92% and suggests that the market can move in the downward direction
Overall Bias is Negative and Short-term trades can be initiated with tight Stop Loss and Take Profit targets.
Trade Suggestion-Stop Sell At 2873, Take Profit At 2857 Stop Loss At 2881