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.

Trading Preference.

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. 

Recommended brokers