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S&P 500 rocked by volatility on Thursday
Updated: Jun 1, 2018, 04:37 GMT+00:00
The S&P 500 struggled to find its footing during the session on Thursday as it was announced that the Americans were going to slap tariffs on both Canada and Mexico. Beyond that, they are also looking at slapping tariffs on the European Union, so quite frankly this pair with a lot of concern and disarray into the marketplace. We felt towards the bottom of the overall consolidation area but did find a little bit of stability later on. I think at this point, it’s not even a sign of support more than a sign of simple exhaustion.
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This is a market that should be consolidating quite comfortably between 2700 and 2740. However, headlines continue to cause major problems trading the markets, as tariffs are now being levied against the European Union, Canada, and Mexico. 25% tariffs on steel, and 10% tariffs on aluminum. The EU has already said that it is going to retaliate, and at this point I think it’s hard to tell where this market goes next, because it is driven on pure emotion at this point.
I still look at major selloffs as a potential buying opportunity, but I also recognize that we may be better served to sit on the sidelines in the short term. I think that the market will continue to be one that is very emotionally driven, but I think that the overall attitude will remain skittish at best. In other words, if you have profit you will probably need to take them as quickly as possible. In that type of environment, it’s probably better to find other things to do than trade a stock market that is moving on tweets, comments, and conjecture at best. Fundamentals and technical analysis tend to fall short in the situations.
S&P 500 Video 01.06.18
About the Author
Christopher LewisSenior Analyst
Chris is a proprietary trader with more than 20 years of experience across various markets, including currencies, indices and commodities. As a senior analyst at FXEmpire since the website’s early days, he offers readers advanced market perspectives to navigate today’s financial landscape with confidence.
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