|The S&P 500 and Dow Jones ended Friday +0.24% and -0.04% respectively in what was a rather mixed session for global equities. The haven-linked US Dollar and similarly-behaving Japanese Yen trimmed some of their gains during the North American trading session. This is also as the sentiment-linked Australian Dollar and New Zealand Dollar regained some lost ground from early on.To get more news about WikiFX, you can visit wikifx news official website.|
During the Asia Pacific trading session, risk aversion engulfed financial markets as China imposed more stringent control over Hong Kong. This has drawn harsh criticism from the United States as tensions with China have already been on the rise as of late. These woes sent the Hang Seng to its worst day since July 2015, dropping 5.56 percent.
Then sentiment cooled and cautiously recovered throughout the European and North American trading sessions. This is as Anthony Fauci, chief of the US National Institute of Allergy and Infectious Diseases, said that staying locked down for a ‘prolonged period’ is not the way to go. Bets of lockdown easing and a reinvigoration in economic activity may have rekindled speculative appetite from investors.The week starts on a rather quiet note, with US markets offline for the Memorial Day holiday today. This could make for less-than-usual liquidity conditions, exacerbating price swings in markets in the event of breaking headlines. A lack of prominent economic event risk also places the focus for currencies on market mood.
S&P 500 Technical Analysis
The S&P 500 has been struggling to push through the peak from April. This makes for a range of resistance between 2944 – 2965. Negative RSI divergence is present and that is a sign of fading upside momentum which could precede a turn lower. If that is the case, immediate support seems to sit below at 2908 followed by 2823.