Will closure of US consulate in Chengdu trigger sell off in S&P 500?

China ordered US to close its consulate in Chengdu as a retaliation to US demand China to close its consulate in Houston. S&P 500 futures (ES) dropped -0.7% as of the current London session, slightly above 3200. Will the escalated tension between US and China trigger a meaningful selloff in the market?

Check out the video for a complete walk through of the daily market analysis of S&P 500 futures (ES) for 24 Jul 2020 trading session. In this video, I am going to show you the market recap on the last session, plus a trade review in the M3 timeframe (including entry, exit and the rationale behind) initiated during the US session. The trade setup was based on a spring of the non-Regular Trading Hour (RTH) low followed by a reversal. Going forward, I will cover the bias, the key levels to pay attention to, the potential setup for the US session later.

I encourage you to watch my daily market analysis video yesterday if you haven’t in order to better relate to the market recap and the trade review.

Bias — bearish(Day trading); bullish (long term)

Key levels — Resistance: 3230, 3270, 3310–3340; Support: 3190, 3170–3180, 3105