S&P 500, even though dipped as a result of the raising of tariffs to 25% on Chinese goods to USA, it shrugged off and rebounded on Friday and formed a hammer. Thursday’s candle was also a hammer.
In addition to that, we can also notice the high volume on those two candles.
After raising the tariffs, US President Donald Trump said that US-China relations remain ‘remain very strong’ despite the two countries being embroiled in a trade war. This could have been the reason for the rebound.
As long as the market remains above 2800, the preference is to the upside target of 2950.
Disclaimer: Our analysis and forecasts given on this website are just our point of view about the market. It is not a trading signal or investment advice.