S&P 500 Price Forecast – US/China Talks Underway

The S&P 500 fell rather hard in the electronic session as word got out that the Chinese were possibly leaving the talks a day early. This ended up being a light, something that was put out there to trick algorithms into selling in order to push somebody else’s position into profit. The reason I know this is that it was released during Australian/New Zealand electronic trading, where the volume is very thin.

S&P 500 Video 11.10.19

As soon as the Chinese mainstream media got wind of this, they denied that the South China Morning Post reported this, and the next thing you know everything turned around. During the day, there has been a lot of volatility in the market is reaching towards the 50 day EMA in the middle of the trading session in the United States, but quite frankly it looks like we are simply going to bang around in this area until the talks are over. There could be a bit of “front running” of the potential deal but I would be very cautious about taking that position as it’s very likely to be dangerous to say the least.

The trade talks will actually be over until the markets are closed on Friday more than likely, so I don’t know what to expect other than volatility. There will be tweets and rumors that throw this market back and forth. The most professional trading plan that I can offer for this environment: stay away from it until we get concrete facts.