Daiviet Huynh | May 14, 2019 04:46AM ET
Markets started the week in the red in the wake of Asian indices after the discussions between the U.S. and China hit a brick wall. The trade war will inevitably affect negatively global markets. The majority of Wall Street analysts may see a buying opportunity in the current market sell-off, on the other hand, UBS strategist, Francois Trahan is foreseeing a market heading lower as UBS "expect the S&P 500 to hit 2,550 by the end of 2019".
Looking at the chart, the S&P 500 remains above the highly critical level of $2,800 which is a strong support area. If this level is violated, we might see a continuation of a slide towards $2,780, which is the 200-day moving average. Conversely, a move above the $2,900 resistance would suggest a market returning to a retest of the all-time high. We are maintaining a short position with a target price at $2,750 and stop-loss at $2,900.
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