U.S. Indices Wait On Trade Talks

U.S. Indices Wait On Trade Talks

Anna Coulling  | Feb 12, 2019 12:15AM ET

NQ Daily

Last week’s close lower in the VIX, coupled with Friday’s late buying of the indices has continued as we start a fresh trading week with focus once again on U.S.-China trade talks, which have now resumed following the Chinese New Year holiday. Markets have taken this resumption as a positive, but the March 1st deadline still looms and marks the end of the 90-day truce agreed between Donald Trump and Xi Jinping.

Since my last post on the indices, written just ahead of last month’s FOMC when consolidation was much in evidence as traders and investors waited to see if the Powell Fed would row back on raising interest rates and give markets a boost. Powell duly delivered.

Since then we have seen some steady, if somewhat muted gains in the ES, YM and NQ, particularly for the NQ which once again finds itself in a relatively narrow range and facing some stiff resistance at the 7000 price level as denoted by the red line of the Quantum accumulation and distribution indicator on the daily chart. However, the good news for the NQ is that in its recent move higher the index has managed to move through the volume point of control at 6850 thereby providing the index with a solid platform of support which was tested last Thursday and Friday.

NQ Weekly

Moving forward, the NQ the weekly chart also sees the index trading at the volume point of control at 6920 and this chart also highlights the strong resistance at 7200 which the NQ must breach before it can regain its all-time high of October 2018 at 7753. So a tricky climb ahead.

YM Weekly

For the YM, price action has been more measured and the key level here can be found on the weekly chart in the 25300 price region which the index did manage to pierce in last week’s trading before falling back. Any break through this resistance would see the YM move to test its all-time high of 26987 of October 2018.

The monthly chart is also encouraging for the YM, as recent price action has taken the index above the volume point of control in the 24600 region which will act, not only as a springboard to any move higher, but also as solid support in any pullback.

Quantu, Dynamic Accumulation And Distribution

Finally to the ES where both the daily and weekly charts reveal strong support for the index from the volume point of control at 2695 and 2685 respectively and with no major resistance until the 2800 price point a break here would see the index test its all-time high of 2949 of October 2018.

The technical picture for the three indices is now set and as they wait for the outcome of the talks in Beijing and the March 1st deadline.

Anna Coulling

Related Articles

Latest comments

Add a Comment
Please wait a minute before you try to comment again.
Discussion
Write a reply...
Please wait a minute before you try to comment again.

Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.

English (UK) English (India) English (Canada) English (Australia) English (South Africa) Deutsch Español (España) Español (México) Français Italiano Nederlands Português (Portugal) Polski Português (Brasil) Русский Türkçe ‏العربية‏ Ελληνικά Svenska Suomi עברית 日本語 한국어 中文 香港 Bahasa Indonesia Bahasa Melayu ไทย Tiếng Việt हिंदी
Sign out
Are you sure you want to sign out?
NoYes
CancelYes
Saving Changes

+