Morning Market Brief
- Renewed worries on China economic slowdown driving markets lower
- Lampert revises bid for Sears in $5 billion bid
- Target ($TGT) shares pushing higher on accelerated holiday sales
- Fed announcing possibility of fewer rate hikes in 2019
- Government shutdown entering 19th day
- Ford ($F) to cut thousands of European jobs, close plants
U.S. stock futures are looking to open lower Thursday with the DOW currently down over a 100 points. The pullback could just be a relief from the recent rally but traders are suggesting that we are running into a big pivot level.
Taking a look at the weekly $SPY chart below you can see that $260 is an important pivot level where we should see some resistance. Traders will be watching prices at this important level for clues on the strength of the recent rally. With such a sharp downturn the past couple weeks, this rally could be seen as a “dead cat bounce” so we’ll want to see how prices move over the next few days.
Investors have been optimistic that past few days as the U.S. and China reportedly had a positive trade talk meeting that wrapped up on Tuesday and the Federal Reserve’s recent comments on possibly slowing down interest rate hikes. However, we’re now seeing renewed worries surface on China’s economic slowdown and how its affect US companies as well as the continued government shutdown, which is now on day 19.
