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- Will the correction in the SPX continue? – The American session today
Will the correction in the SPX continue? - The American session today
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Loading...The S&P500 fell to 2885 today in the futures session. The price fell below its previous bottom on a daily and 4-hour chart. Stocks in Europe suffered the heaviest losses: DAX collapsed to 12071 before retracing back above 12100.
The price forms a descending broadening wedge formation in the oversold area of the DeMarker oscillator. Considering the low volume in the upward movements, however, we will monitor the market for a more decisive breakout. We will look for appropriate to initiate positions above 2890, where the price will be supported by Fibonacci 23.6% (at 2889.69). Above these levels, however, any long position should be opened with very tight stops as the short-term trend is downward and there are still no clear signs that the broadening wedge formation will not continue.
Risks to stocks remain high. By the end of the week, we expect a decision on the imposition of tariffs on $200 billion imports from China. We will also watch for a NAFTA agreement between Canada and the US, as well as an interest rate hike in Canada (at 17:00 today). President Trump's threats that the United States will leave the WTO if the organization does not make policy changes further hinders investor sentiment and risk appetite.
These are the actions we will follow today:
General Electric - Over the past year, the conglomerate is in the process of selling most of its assets. The historically low price of the stock made it among the favorites for value investors this year. This year's performance of the stock, however, is bad. UBS reduced its share rating to a $ 13 target.
Walmart - Increased optimism by analysts who think that the online activities of the company will make it more competitive.
Anthem - The company's rating is raised to "overweight" by Morgan Stanley.
Toyota - The company has announced that it must "recall" more than 1 million cars from the Prius. We expect strong bearish pressure on the action today.
Boeing - The new KC-46 refueling tanker has been approved by US regulators.
Caterpillar - According to Deutsche Bank analysts, the low price and market capitalization of the company as well as CAT's position in the credit cycle makes it attractive for long positions.
Source: CNBC
Original post: Stocks making the biggest moves premarket
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