US market: overbought remains in S&P 500 technical picture


Futures for US indices are rising before the opening of trading Monday. Futures on the S & P 500 runs in the region of record levels. Among the leaders at the premarket are stocks of electric car manufacturers.

USA and China

Investors are looking forward to signing documents for the first phase of the trade transaction, which is expected this week – January 15.

Until now, the market is not fully aware of the agreements of the countries. Washington is expected to lower duties on Chinese goods in response to Beijing’s increased purchases of US agricultural, engineering and energy products, as well as expanding the rights of representatives of US companies in China.

This agreement is important to Trump in election year. To aggravate the situation now is probably not in favor of the White House.

Futures on the S&P 500

In the technical picture of the S&P 500, overbought remains.

The last time the RSI oscillator on the daily chart was in the lower zone of extreme values ​​in August. Since then, the index has grown by 18%. He was far ahead of the 200-day moving average. A possible pivot point for correction can be found at 3300.


At the premarket, growth continues in the shares of the artificial meat producer Beyond Meat (+ 6%). Market participants put in quotes that the company will become the main supplier of vegan cutlets for McDonald’s.

Technically, the price for two months stood sideways at the lows and sharply broke up, adding more than 36% over the past week. Another hero of recent weeks – Tesla shares (+ 1.8%) also continue to rise rapidly, getting closer and closer to the mark of $ 500 per share.

The company’s capitalization exceeded Ford and GM combined after a factory in China was opened.

But even greater growth is shown by the papers of the Chinese electric car manufacturer NIO (+ 6.5%). The surge in purchases is caused by statements by a Chinese official that Beijing will not significantly reduce subsidies for the purchase of electric vehicles this year.

The topic of the future of electric vehicles is actively recouped by investors in the growth of prices for palladium and rhodium.

Nokia receipts rise in price by 2% after increasing recommendations on them by Citigroup analysts. Paper Alibaba of China is getting the same price.

Report Season

Tomorrow, market participants will focus more on the report season. Analysts expect S&P 500 earnings to decline for the fourth quarter in a row. January 14 reports will be presented by JPMorgan Chase, Citigroup and Wells Fargo.


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