White House “optimistic” on trade deal
Positive reaction in stocks minimal
US small caps showing more signs of resistance
Another day another trade headline. The repetitive nature of the will-they-won’t they headlines on a possible US-China trade deal seems to be not just growing old for those of us who analyse the markets but also for the markets themselves, with the latest one failing to cause as big a reaction as past iterations. The most recent news to cross the wires states that the White House are “optimistic about some kind of US-China trade deal” and that if a deal is reached then some tariffs could be lifted.
Compared to the rally seen yesterday morning on positive trade news the recent uplift is decidedly weak and could be seen to suggest that the boost from this recurring story has maybe run its course. Source: xStation
We pointed out earlier this week that there were signs that the US small cap index (US2000 on xStation) was potentially running out of steam and yesterday was another example of price making an attempt to run higher but failing to hold on to most of the gains. This saw a 3rd long wick form on the D1 candle in the past 4 days and if price closes around the current level or lower this evening then the weekly price action will also hint at a possible top.
After starting the week brightly attempted moves higher in the US2000 have failed to stick with intraday gains often handed back into the close. This is indicative of resistance and selling pressure and as long as the high of 1613 holds then a turn lower could lie ahead. Source: xStation
On a H1 timeframe the market has dropped below the Ichimoku cloud, hinting at a possible change in the short term trend lower. Source: xStation
The content of this report has been created by X-Trade Brokers Dom Maklerski S.A., with its registered office in Warsaw, at Ogrodowa 58, 00-876 Warsaw, Poland, (KRS number 0000217580) and supervised by Polish Supervision Authority ( No. DDM-M-4021-57-1/2005). This material is a marketing communication within the meaning of Art. 24 (3) of Directive 2014/65/EU of the European Parliament and of the Council of 15 May 2014 on markets in financial instruments and amending Directive 2002/92/EC and Directive 2011/61/EU (MiFID II). Marketing communication is not an investment recommendation or information recommending or suggesting an investment strategy within the meaning of Regulation (EU) No 596/2014 of the European Parliament and of the Council of 16 April 2014 on market abuse (market abuse regulation) and repealing Directive 2003/6/EC of the European Parliament and of the Council and Commission Directives 2003/124/EC, 2003/125/EC and 2004/72/EC and Commission Delegated Regulation (EU) 2016/958 of 9 March 2016 supplementing Regulation (EU) No 596/2014 of the European Parliament and of the Council with regard to regulatory technical standards for the technical arrangements for objective presentation of investment recommendations or other information recommending or suggesting an investment strategy and for disclosure of particular interests or indications of conflicts of interest or any other advice, including in the area of investment advisory, within the meaning of the Trading in Financial Instruments Act of 29 July 2005 (i.e. Journal of Laws 2019, item 875, as amended). The marketing communication is prepared with the highest diligence, objectivity, presents the facts known to the author on the date of preparation and is devoid of any evaluation elements. The marketing communication is prepared without considering the client’s needs, his individual financial situation and does not present any investment strategy in any way. The marketing communication does not constitute an offer of sale, offering, subscription, invitation to purchase, advertisement or promotion of any financial instruments. X-Trade Brokers Dom Maklerski S.A. is not liable for any client’s actions or omissions, in particular for the acquisition or disposal of financial instruments, undertaken on the basis of the information contained in this marketing communication. In the event that the marketing communication contains any information about any results regarding the financial instruments indicated therein, these do not constitute any guarantee or forecast regarding the future results.