Gold Shows Strength, While S&P 500 Futures Could Slide Ahead

On analysis of the movements of S&P 500 futures in different time frames, I find that the SPX may have received temporary relief by the U.S. lawmakers who finally reached an agreement on an estimated $2 trillion stimulus package aimed at shielding the U.S. economy from the worst consequences of the coronavirus pandemic. Expectations are high that the deal could be passed into law as early as later Wednesday.

S&P 500 Futures have been facing stiff resistance at the level of 2468. If the resistance level remains constant, it could result in a sudden sell-off on Wednesday, any time if, especially if the index is not able to make a sustainable move above 2468 before the opening bell Wednesday. There is no doubt that the S&P 500 futures have been at the critical level below 2424, which ensures a steep slide ahead. 

I find that the prevailing strength in Gold futures shows the upcoming meltdown in global equity markets due to growing fear of global lockdowns, which may continue to hamper the global growth for a long time. 






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