US equities closed broadly lower on Friday while gold and silver prices advanced to a nearly-two-month high, after Republicans withdrew President Trump’s new healthcare reform plan due to a lack of support. 

This shows that the new administration is facing not only external, but also internal resistance to implement their ambitious plans to reform and revitalise the country. 

President Trump expressed his disappointment via Twitter, adding "We’re moving on to tax reform", for which they will seek the support of their Democrat opposition. It remains to be seen whether the market will be easily convinced of their ability to deliver, considering the many other stimulus plans and obstacles on the road ahead.

Technically, the US S&P 500 index has turned bearish, with the ‘SuperTrend’ indicator flipped downwards and turned red for the first time since 8 November. This suggests that the “Trump rally” has probably come to an end, at least temporarily. According to the Fibonacci extension, 2,295 is likely to be a near-term support level, and 2,410 a near-term resistance level. 

In Singapore, the Straits Times Index is facing strong selling pressure at around the 3,160 area, which is also its 61.8% Fibonacci retracement level. The headwind from the US is likely to have a negative impact on Asian markets in the days to come, while markets also need some reason to take profit after three months’ of rallying. 
 
US SPX 500 - Cash


CMC Markets is an execution-only service provider The material (whether or not it states any opinions) is for general information purposes only, and does not take into account your personal circumstances or objectives. Nothing in this material is (or should be considered to be) financial, investment or other advice on which reliance should be placed. No opinion given in the material constitutes a recommendation by CMC Markets or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person.

CMC Markets is an execution-only service provider. The material (whether or not it states any opinions) is for general information purposes only, and does not take into account your personal circumstances or objectives. Nothing in this material is (or should be considered to be) financial, investment or other advice on which reliance should be placed. No opinion given in the material constitutes a recommendation by CMC Markets or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person.

CMC Markets Singapore may provide or make available research analysis or reports prepared or issued by entities within the CMC Markets group of companies, located and regulated under the laws in a foreign jurisdictions, in accordance with regulation 32C of the Financial Advisers Regulations. Where such information is issued or promulgated to a person who is not an accredited investor, expert investor or institutional investor, CMC Markets Singapore accepts legal responsibility for the contents of the analysis or report, to the extent required by law. Recipients of such information who are resident in Singapore may contact CMC Markets Singapore on 1800 559 6000 for any matters arising from or in connection with the information.