In the last hour the S&P 500 has lost approximately 0.63% of its value as the stock market resume the last few days downtrend. On Monday, ahead of the US Markit PMI figures, I said that the S&P 500 was trapped in a rectangle pattern and that a break to the 2977.9 level might send the S&P 500 to the 2932 level.
The S&P 500 reached a low of 2951 before turning higher. However, the downtrend remains unchanged, and the index remains at risk of revisiting yesterday’s low of 2951, followed by the rectangle pattern target at 2932. The downtrend in the index will remain in play as long as the index trades below the September 24 high of 3007.5.
The declassified whistleblower complaint appears to have has triggered the resumed decline in the S&P 500. The report does not add much new information to the current situation, and the individual was not a direct witness to most of the issues raised in the complaint. The mood is also suppressed following the news that the WTO will allow the US to impose tariffs on around $7.5 billion of EU goods in an aircraft subsidy dispute. If the US goes ahead with the tariffs it would further add to trade wars anxieties.