S&P 500 finds support at daily 200 EMA following 6.5% bloodbath decline

The US stock market has suffered a turbulent week in light of the ongoing trade war between the US and China.

Having rallied to all-time highs just weeks ago, the S&P 500 crashed back to reality this week by falling more than 6.5% in three days.

Support finally came in at around 283, with the 200 exponential moving average (EMA) on the daily chart propping price up above the 280 level of support.

The S&P 500 then registered its biggest one-day rise in two months on Tuesday, surging back to the 288 level of resistance.

There is a notable gap to fill between 288 and 291, but this could be filled in the coming days as confidence and optimism re-enters the market.

After Wall Street closed for trading on Monday, the US Treasury labelled China a “currency manipulator”, although the White House is keen on continuing trade talks with China ahead of the September 1 deadline for new tariffs on Chinese imports.

The US market wasn’t the only market to be hit either. London’s FTSE also saw a 0.7% decline while currency markets continued to suffer.

The US dollar rallied against its Chinese yuan pair, while the British pound is turgidly grinding against its lowest level since 2017 at $1.21.

However, the US dollar has struggled against the Japanese yen, falling to as low as 105.65 before experiencing a 0.68% bounce to the upside.

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