At the close, the Dow Jones was up 1.15% (23 327.46 points). The SP500 increased by 0.85% up to 2506.85 points and Nasdaq Composite increased by 0.77% up to 6635.28 points
2018 was the worst year for global equity markets since the start of the financial crisis in 2008. Investors are worried about the slowdown in global economic growth in 2019 in the face of protracted trade disputes and expectations related to further interest rate hikes in the US. The SP500 index fell in December by 9.94%. - it was the largest monthly drop since February 2009 and the worst December since the Great Depression.
Economists say that the "terrible year" is ending, but there are hopes for improvement in US-China trade relations. US President Donald Trump assessed on Saturday after a telephone interview with China's leader Xi Jinping that a "big progress" was achieved on the conclusion of a possible agreement between the United States and China.
Moreover, China wants to cooperate with the US to implement the trade arrangements made by Presidents Xi Jinping and Donald Trump in early December in Argentina - said the spokesperson of the Beijing Foreign Ministry Lu Kang on Sunday.
Let's now take a look at the SPX technical picture at the H4 time frame. The market has made its way to the level of 251.55 which is a 38% Fibo retracement of the last wave down, but it is too weak to climb higher towards the technical resistance at the level of 253.36. The momentum is rather neutral, which is not helping much the bullish case, but the market conditions are oversold and bouncing upward. The nearest short-term technical supports are seen at the levels of 246.36 and 238.91.
