ZuluTrade Blog

Trump's tweet on healthcare troubled SPX500

Market View | Wednesday, March 8, 2017 5:03 AM GMT

SPX500 was pressured by the fall in health care stocks yesterday. As usual, a tweet by US President Donald Trump was enough to cause “grey clouds” over the market. He said that he was working on a new system to increase drug industry competition and reduce drug pricing. Furthermore the geopolitical risks that are being raised by North Korea’s behavior lately, may give an opportunity to trader for locking some profits after six weeks of winning streak. Later, during the NA session, we will have the ADP report on the US private sector employment, which is seen as a forerunner to Friday's jobs data (NFP).

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Source: ZuluTrade Calendar

SPX500 Technical Analysis

SPX500 Daily

There is an important MACD divergence as noted on below chart. Yesterday’s DAX chart had a similar divergence. SP500 is following this rising channel (yellow) really well. Therefore, we have drawn few possible scenarios too, that may be helpful.



SPX500 Hourly

You can see type of falling wedge on the hourly timeframe. Currently, the price is testing the upper trendline. Furthermore, we have noted the red resistance zone, which is critical for the short-term market bias.


 


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