President Donald Trump’s tweet about a Joe Biden presidency’s effects on the markets Seems to have spooked investors on the S&P 500 index. After yesterday’s gains, investors seem to have grown more cautious on the day as the president’s tweets once more shared the spotlight on the upcoming US elections. Already, some controversies have arisen as to how the elections should be conducted. While people like former President Barack Obama have lent their support to the mail-in voting system, the US President appears to be towing a different line, fearing that the mail-in voting system could subject the elections to manipulation.
New polls from several sources show Joe Biden ahead of President Trump by at least 4 points in several states.
Before the coronavirus outbreak, the US economy seems to be doing well with record recoveries in jobs numbers as well as improvements in several economic indices. The onset of the coronavirus epidemic and the devastation it has brought to the US economy has left President Trump re-election bid up in the air.
The S&P 500 index currently trades at 3302.5 as of the time of writing.
Technical Outlook for S&P 500
Today’s opening dip took the S&P 500 to the lower wedge border. A bounce from this level targets the 3335.5 resistance level, which also has the upper wedge border impinging on it. Only a break from this area which aims for the 3400 psychological support (19 February high) invalidates the wedge.
Conversely, a successful breakdown of the wedge’s lower border can target the 3228.4 price level, allowing the S&P 500 bears to make a break for the 3137.0 support. Below this area, 3070.8 and 3028.3 remain viable support targets, with the latter serving as the gateway to the support zone which continues to hold its own resolutely.
Don’t miss a beat! Follow us on Telegram and Twitter.
S&P 500 Daily Chart
More content
- Download our latest quarterly market outlook for our longer-term trade ideas.
- Follow Eno on Twitter.
- Do you enjoy reading our updates? Become a member today and access all restricted content. It is free to join.