Skip to Content
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.

Free Trading Guides
Please try again

Live Webinar Events


Economic Calendar Events


Notify me about

Live Webinar Events
Economic Calendar Events






More View More
S&P 500 Outlook: US-China Tensions Puts S&P 500 at Risk of a Breakdown

S&P 500 Outlook: US-China Tensions Puts S&P 500 at Risk of a Breakdown

What's on this page

FTSE 100 Price Analysis & News

  • US-China Tensions on the Rise
  • S&P 500 Risks Breaking Down

The tensions between the US and China are growing louder as China looks to impose countermeasures on US individuals who are filing lawsuits seeking COVID-19 damages from China. While President Trump has stated that he not only disappointed with China but will also place Chinese companies trading on US exchanges under scrutiny, it feels we are only one headline (or Tweet from President Trump) away from a notable escalation, which would be expected to place further pressure on risk assets.

Trading Forex News: The Strategy
Trading Forex News: The Strategy
Recommended by Justin McQueen
Trading Forex News: The Strategy
Get My Guide

S&P 500 Technical Levels

As we noted yesterday, risk-reward favours a pullback in risk appetite as US-China tensions added with concerns over a second coronavirus wave raises questions on the optimism of economies re-opening. The S&P 500 is testing support 2790-2800, which held in yesterdays session. However, with bouncebacks being somewhat shallow downside risks persist where a break below places focus onto 2750 before the April 21st low at 2726. On the topside, short-term resistance is situated at 2830-40.

US 500 Bearish
Data provided by
of clients are net long. of clients are net short.
Change in Longs Shorts OI
Daily 15% -9% 3%
Weekly 34% -18% 5%
Learn how to use Sentiment in your trading strategy
Get My Guide

S&P 500 Price Chart: 1-Hourt Time Frame

Source: IG

S&500 Price Chart: Daily Time Frame

--- Written by Justin McQueen, Market Analyst

Follow Justin on Twitter @JMcQueenFX

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