Finally, The USA and China Meeting ends with Good News for spx

“Things look very good” – Tweets Trump after his Meeting with Xi Jinping
The good news today is that the trade war between the USA and China has calmed down. The meeting between Donald Trump and Xi Jinping was finally successful. They both agree to resume trade talks as before. This trade war, between the two giant economic powers, has been on-going for more than a year.

This is a great relief for the stock market. This success may cause a rally, meaning it is now a good time to look for a buy position on the SPX500 Index.

There are three scenarios that may happen and should create the opportunity for buy position.

The three scenarios are:

1. Buy at demand level 1, as long as the price did not break out the resistance above.
2. In the case of the price breaking out at demand level 1 – I will close the buy position and wait to buy again at demand level 2.
Breaking out of the resistance will make the two scenarios above irrelevant.
3. In the case of breaking out the resistance, we should look for a new setup for a buy position, something like a fresh demand with a confluence for a Fibonacci retracement.

If any of these three scenarios evolve, then the target for all these scenarios should be 3000 zones.

Comment:

The price creates a fresh demand that brokeout the resistance, 2944.00 is the right level to buy