SPX is currently trading in a parallel channel. From a pure technical point of view, it looks like price could bounce from the lower limit. A strong divergence on the daily chart supports that idea as well (RSI going up).
However, I would be very carreful, as tangible consequences of the trade war start appearing - Industrials may not declare earnings as good as expected, and tech companies such as amazon also disapointed. In addition, the world outlook has changed since most developped countries (US, Canada, Europe...) are increasing rates. Investors are worried that good earnings (boosted by the tax cuts) will only make us stocks fall from higher.
In this context, I believe we could see a technical bounce, but the overall trend remais bearish. If price breaks below the limit on Monday, this would be extremely bearish.
However, I would be very carreful, as tangible consequences of the trade war start appearing - Industrials may not declare earnings as good as expected, and tech companies such as amazon also disapointed. In addition, the world outlook has changed since most developped countries (US, Canada, Europe...) are increasing rates. Investors are worried that good earnings (boosted by the tax cuts) will only make us stocks fall from higher.
In this context, I believe we could see a technical bounce, but the overall trend remais bearish. If price breaks below the limit on Monday, this would be extremely bearish.