News & Analysis at your fingertips.

We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site. See our updated Privacy Policy here.



Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events


Economic Calendar

Economic Calendar Events

Free Trading Guides
Please try again
More View more
Real Time News
  • Gold could suffer further near-term losses due to rising U.S. Treasury yields and a weak technical picture for price action. Get your weekly gold forecast from @DColmanFX here:
  • Gold has been trending lower after failing to clear resistance in the $1835 area earlier this month. Get your $XAUUSD market update from @DColmanFX here:
  • Key break here in the 10-year #Treasury yield as it rises to the highest since late June Took out 1.4230 resistance, and the 100-day SMA Eyes now on the 38.2% Fib extension at 1.4775 Also potential falling resistance from March
  • The move in rates after this week’s FOMC has continued and the 10 year yield has pushed up to a fresh two-month-high. Get your market update from @JStanleyFX here:
  • S&P 500 contending with its proverbial ‘line in the sand’ as bulls and bears battle for directional control. How we close/trade around the 50-day moving average could serve as a noteworthy bellwether for risk trends headed into next week. I remain cautious below ~4,480. $SPX $ES
  • USD/JPY trades to a fresh monthly (110.57) amid the pickup in longer-dated US Treasury yields, and the exchange rate may stage a larger advance over the coming days. Get your market update from @DavidJSong here:
  • US yields continue to climb, with the 10-year Treasury yield trading above 1.45% $ZN $ZB
  • $USDJPY bull thesis appears quite constructive. Technicals show topside breakout above trend resistance following a period of consolidation. Bond yields providing the fundamental catalyst. Eyes on Aug/YTD highs. A broad-based deterioration in market sentiment poses downside risk.
  • WTI posting another session of strong gains, currently flirting with the 74 handle $CL #Oil #OOTT
  • The New Zealand Dollar’s bullish breakout attempt in early-September was rebuffed. Price action at the end of the month is telling a different story. Get your market update from @CVecchioFX here:
S&P 500 Lower Gaps Continue as Trade War Confidence Erodes

S&P 500 Lower Gaps Continue as Trade War Confidence Erodes

Peter Hanks, Strategist

S&P 500 Outlook:

  • The S&P 500 has suffered an average -1.43% gap lower on Monday’s this May
  • In the month to date, over 71% of all trading sessions have seen the index open lower than it closed the session prior
  • Retail traders are overwhelmingly short the S&P 500, find out how to use IG Client Sentiment Data with one of our Live Sentiment Data Walkthroughs

S&P 500 Lower Gaps Continue as Trade War Confidence Erodes

Trade war tensions continue to weigh on the S&P 500 after the United States’ decision to blacklist Huawei on concerns of national security risk. In turn, many of the Index’s top growth stocks were crippled in Monday trading and the decision could have deeper ramifications for the tech industry – particularly semiconductors. While the longer-term implications unfold, the immediate reaction was clear.

S&P 500 Price Chart Daily Time Frame (March 2019 – May 2019) (Chart 1)

S&P 500 Lower Gaps Continue as Trade War Confidence Erodes

Gap percentage indicator in red

Staying true to form, the S&P 500 staged another gap lower at Monday’s open. The -0.62% gap was the third consecutive lower Monday open for the Index which is now on pace for the most bearish gaps in a month since last May when it opened lower 16 times in 22 sessions.

S&P 500 Gap Measure Indicator: Daily (January 2018 – May 2019) (Chart 2)

S&P 500 Lower Gaps Continue as Trade War Confidence Erodes

USDCNH: Why 7.00 is the Spot to Watch in the US-China Trade War

While the number of gaps is likely just a coincidence, some traders may put forth the “sell in May and go away” idea as a driving force behind the moves. That said, the phenomenon has proved less reliable in recent years and the onset of fundamental factors has undoubtedly played a major role. With 8 sessions left in the month, the S&P 500 looks poised to end lower – currently -3.75% beneath its opening price in May.

S&P 500 Lower Gaps Continue as Trade War Confidence Erodes

If last year was any indication, the months following May could continue the recent trend. From May to December 31, 2018, the S&P 500 shed roughly 5% - the majority of which was lost in December’s rout. In the shorter-term, both President Trump and Fed Chairman Jerome Powell are slated to speak Monday night. Given the fragile state of trade tensions and the market, traders should look to limit risk exposure over weekends, and key an eye on volatility for hints of rising uncertainty.

--Written by Peter Hanks, Junior Analyst for

Contact and follow Peter on Twitter @PeterHanksFX

Read more: EURGBP Extends Winning Streak as Brexit Uncertainty Weighs

DailyFX forecasts on a variety of currencies such as the US Dollar or the Euro are available from the DailyFX Trading Guides page. If you’re looking to improve your trading approach, check out Traits of Successful Traders. And if you’re looking for an introductory primer to the Forex market, check out our New to FX Guide.

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.