The USA vs CHINA a view over the 2 Index by ThinkingAntsOk
USA vs China
-Trade War between those two country’s has shown how the markets react on a Negative way to this kind of events.
-Since May 1, Sp500 futures have been falling 5% from Historical Higher highs due to conflicts with China, however, China Index has been on a bearish movement since 17th of April accumulating a bearish move of -10,21%, more than twice of the E-mini SP 500
-While this conflict keep on going we can expect markets to keep reacting on a negative way
-On E-Mini Sp500 we can see that price is inside a bearish channel since the beginning of the movement, this channel has been working as the main trend of that move.
- By Elliott wave theory we can label this structure as a Complex corrective form “ Triple - Threes” and we can expect price to reach again the bottom trendline of the bearish channel, before starting a correction of the whole down movement
- On China Index if price consolidates below 10645.00 we can expect a continuation of the bearish trend towards 9962.00
-Trade War between those two country’s has shown how the markets react on a Negative way to this kind of events.
-Since May 1, Sp500 futures have been falling 5% from Historical Higher highs due to conflicts with China, however, China Index has been on a bearish movement since 17th of April accumulating a bearish move of -10,21%, more than twice of the E-mini SP 500
-While this conflict keep on going we can expect markets to keep reacting on a negative way
-On E-Mini Sp500 we can see that price is inside a bearish channel since the beginning of the movement, this channel has been working as the main trend of that move.
- By Elliott wave theory we can label this structure as a Complex corrective form “ Triple - Threes” and we can expect price to reach again the bottom trendline of the bearish channel, before starting a correction of the whole down movement
- On China Index if price consolidates below 10645.00 we can expect a continuation of the bearish trend towards 9962.00
Order cancelled:
Price didn’t continue as expected, during Asian trading Hours price broke out the main channel that has been working as the main structure for the bearish movement.
After a downward movement of -5%, a correction was something to expect.
We will wait for a new structure to be formed to be able to take new positions and take advantage of the big volatility that is happening in the markets.
However, this is our vision on the short term, in the long term we still having a bearish view over the index despite the possible correction price might be doing.
We will update the current situation between trade war and market reaction on a new post soon!
After a downward movement of -5%, a correction was something to expect.
We will wait for a new structure to be formed to be able to take new positions and take advantage of the big volatility that is happening in the markets.
However, this is our vision on the short term, in the long term we still having a bearish view over the index despite the possible correction price might be doing.
We will update the current situation between trade war and market reaction on a new post soon!