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Market Technical Trade Sentiments  – 30 August 2019


The markets found new rigour on Thursday as the U.S and China return to the negotiation table to try and find a resolve to the tariff disputes. Asian Markets jumped to a weekly high this morning from the renewed trade talks and that central banks and governments will do more to avert a global economic slowdown. The Chinese have also decided to play the long game and to focus more on the developing its own economy than trade moving forward.

We might just see more upside today which might just work out well for our trade idea of the day on the S&P 500 and Brent Crude Oil.

Please Take Note: If we receive negative news from the U.S-China trade negotiations or a negative Trump “Tweet” the buy outlook for the trade ideas will be negated as prices will move lower back to support levels.


The S&P 500 has been consolidating over the last couple of weeks as the trade negotiations dragged on with no resolve. We would need to see the S&P 500 close above the 2942 resistance level to negate the current consolidation. The Relative Strength Index (RSI) seems to be picking up which might indicate a change in trend.

SPXLM Index GT247 Bloomberg-2


The correlation between the S&P 500 and Brent Crude Oil is something that we have mentioned in some of our trade notes in the past and more recently on the DAX and EURUSD. Whether it be negative or positive, correlation is a great tool to use in finding trades in different markets.

There is a positive correlation that exist between the S&P 500 and Brent Crude Oil and it looks like both are set to move higher from recent resistance levels.

SPXLM Index C GT247 Bloomberg

Brent Crude Oil

Oil prices have been in the spotlight this year as geopolitical tensions rise, and OPEC moved forward with its supply cuts in the hopes to drive prices higher. The decline in inventories this week added to the gains we have seen this week and a looming hurricane in Florida. If the trade talks go well we might expect that to also filter through to the Oil market which might also drive prices higher.

CO1 Comdty GT247 Bloomberg-1


Technically the Wall Street 30 might give better visual entry level for beginners. Keep in mind that the price action will move in the same direction as the S&P 500.

WS30LM Index GT247 Bloomberg-1Source - Bloomberg 


Any opinions, news, research, reports, analyses, prices, or other information contained within this research is provided by Barry Dumas, Market Analyst at GT247 (Pty) Ltd t/a GT247.com (“GT247.com”) as general market commentary, and does not constitute investment advice for the purposes of the Financial Advisory and Intermediary Services Act, 2002. GT247.com does not warrant the correctness, accuracy, timeliness, reliability or completeness of any information which we receive from third party data providers. You must rely solely upon your own judgment in all aspects of your trading decisions and all trades are made at your own risk. GT247.com and any of its employees will not accept any liability for any direct or indirect loss or damage, including without limitation, any loss of profit, which may arise directly or indirectly from use of or reliance on the market commentary. The content contained within is subject to change at any time without notice.