S&P 500 TECHNICAL ANALYSIS
S&P 500 futures, which offer a view of after-hours trade, are showing signs of topping on the daily chart. This because of a Shooting Star, which shows indecision, formed after prices failed to close above the record highs in September. Accompanying this is a bearish Rising Wedge going back to February.
On top of this, negative RSI divergence indicates fading upside momentum which can at times precede a turn lower. A decline places near-term support around 2900. Meanwhile, sentiment readings do warn that the S&P 500 may be readying up to turn lower.
•European stocks were slightly lower Tuesday morning, after weaker-than-expected data in China underscored lingering concerns about the global economy.
The pan-European Stoxx 600 was down around 0.15% during early morning deals, with most sectors and major bourses in negative territory.
•Shares in Asia fell on Tuesday as readings on China’s manufacturing activity failed to meet expectations, underscoring weakness in the world’s second-largest economy despite Beijing’s attempts to spur growth.
MSCI’s broadest gauge of Asia-Pacific shares outside Japan was off 0.5 percent. Korean shares lost 0.3 percent, the Hong Kong market eased 0.4 percent, while stocks in Australia were down by 0.5 percent.
Investors were also cautious ahead of a two-day meeting of the policy-setting Federal Open Market Committee. The committee is set to release its latest statement at 2 p.m. EDT (1800 GMT) on Wednesday.
•China stocks rose on Tuesday despite lacklustre factory activity data, with some analysts saying that sharp corrections recently have largely reflected expectations of a slower economic growth.
The China market will be closed starting Wednesday due to the Labour Day holidays, and will reopen on Monday, May 6.
The blue-chip CSI300 index rose 0.3 percent, to 3,913.21, while the Shanghai Composite Index gained 0.5 percent to 3,078.34.
Reference: Reuters, CNBC
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