The U.S. stocks sank during a broad sell-off on Monday, with the S&P 500 dropping over 1.5 %. In particular, the technology companies bearing the strength of an escalating trade dispute between the U.S. and different leading economies.
The U.S. Treasury was drafting curbs that may block companies with a minimum of 25% Chinese possession from purchasing U.S. technology companies. In response, the dollar plunged to a two-week low against the yen as a rise in the global trade worries depressed investor risk appetites and turned down U.S. yields.
S&P 500 – Daily Outlook
The U.S. stock market index SPX is trading at 2709.02, down 45.25 points and 1.67%. S&P500 is facing a strong support near 2700 after falling 1.59% today. We can expect a pullback above 2700, whereas the violation of this level will lead SPX -1.66% towards 2685.
S&P500- Intraday Support & Resistance Levels
Support Resistance 2745.54 2769.84 2738.04 2777.34 2725.89 2789.49 Key Trading Level: 2757.69
Gold – XAU/USD – Daily Outlook
The precious metal gold is trading bearish at 1267.57, down -0.17% on Monday. Technically, Gold is trading sideways with a lower range of 1264 – 1271. The breakout of this range will define the further trend of gold. The breakout above 1271 can lead gold prices towards 1275 while a breakout below 1265 will open further room for buying until 1261.
Gold- Intraday Support & Resistance Levels
Support Resistance 1271.5 1273.64 1270.84 1274.3 1269.77 1275.37 Key Trading Level: 1272.57
That’s pretty much it for now. Investors are advised to monitor the U.S. CB Consumer Confidence in order to capture further movements in the dollar index, gold, and the U.S. stocks.