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.



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
S&P 500, Nasdaq 100 Under Pressure as Weak Chinese Retail Sales Data Weighs on Sentiment

S&P 500, Nasdaq 100 Under Pressure as Weak Chinese Retail Sales Data Weighs on Sentiment

Brendan Fagan, Contributor
What's on this page

S&P 500, Nasdaq 100, China, Covid, China Retail Sales – Talking Points

  • China retail sales reveals impact of Zero Covid; risk under pressure
  • S&P 500 continues to oscillate around key 4,000 level
  • Nasdaq 100 futures fail to retest Friday’s highs; 12000 in focus
Equities Forecast
Equities Forecast
Recommended by Brendan Fagan
Get Your Free Equities Forecast
Get My Guide

Risk assets are under pressure on Monday as weaker-than-expected retail sales data out of China has started the week out on a sour note. The significant miss on the retail sales print highlights the impact China’s “Zero Covid” policy is having on the economy, which continues to exacerbate global supply chain issues. The potential remains for further escalation in Eastern Europe, as Sweden and Finland officially announced their intention to join NATO.

Market participants will be eager to see if risk can carry on from Friday’s strong rally, which some believe may have carved out a short-term bottom. A break toward last week’s lows for the S&P 500 could see the benchmark officially fall into “bear market territory,” which occurs following a 20% decline. With the Nasdaq 100 firmly in a bear market, it could be a matter of time before the S&P 500 follows suit.

S&P 500 Futures (ES) 1 Hour Chart

Chart created with TradingView

S&P 500 futures continue to pull back following Friday’s melt higher, with price consolidating around the 4000 level early in the NY session. With all rallies into 4050 being sold over the last week, it would seem we firmly remain in a “sell the rip” environment. Price may look to revisit the 3960 area should current weakness prevail, as this area has acted as support multiple times over the last couple of weeks. A break of 3960 could bring last week's lows below 3875 into focus.

Nasdaq 100 Futures (NQ) 1 Hour Chart

Chart created with TradingView

Nasdaq 100 futures continue to be the proverbial "punching bag" for US markets, with the air seemingly coming out of the sails of frothy tech names. With the bigger tech behemoths like Apple starting to really come under pressure, the outlook for the Nasdaq 100 remains bleak. Rallies into 12500 have been faded of late, and price may look to retest 12129 on any extended move lower. For any real move higher to gain traction, price would need to push above the 12500-600 zone that continues to act as overhead resistance.

Trade Smarter - Sign up for the DailyFX Newsletter

Receive timely and compelling market commentary from the DailyFX team

Subscribe to Newsletter

Resources for Forex Traders

Whether you are a new or experienced trader, we have several resources available to help you; indicator for tracking trader sentiment, quarterly trading forecasts, analytical and educational webinars held daily, trading guides to help you improve trading performance, and one specifically for those who are new to forex.

--- Written by Brendan Fagan, Intern

To contact Brendan, use the comments section below or @BrendanFaganFX on Twitter

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