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· S&P 500 RALLY STALLING JUST ABOVE PIVOT ZONE

In our previous webinar, we highlighted the 2932-2974 price zone as a potential pivot area. SP500 has pushed slightly above this range earlier today only to drop back near the topside of 2974. The previous forecast from August 19 is still plausible in that SP500 pivots lower and eventually retests the December 2018 lows near 2324.

Another scenario we are keeping an eye on is that SPX500 climbing to new all-time highs in a continuation of the 2019 trend. What we do know is that if the first scenario identified above is accurate, SP500should fall immediately without rising much beyond today’s high.

· Most Asian stocks swung lower on Tuesday, weighed by Chinese markets after mainland factory-gate prices shrank at their fastest pace in three years while reports of German stimulus plans pushed global bond prices down.

China’s producer price index fell 0.8% in August year-on-year, official data showed on Tuesday, its sharpest decline since August 2016 as flagging demand at home and abroad forced some businesses to slash prices.

“Globally inflationary pressure remains subdued, so in that sense China is not an outlier,” said Sean Darby, global equity strategist at Jefferies in Hong Kong.

Investor focus shifts to the European Central Bank, which is widely expected to introduce a package of monetary easing and stimulus measures on Thursday to offset the effects of an ongoing U.S.-Sino trade war and a global economic slowdown.

The U.S. Federal Reserve is also widely expected to cut interest rates next week as policymakers race to shield the global economy from risks, which also include Britain’s planned exit from the European Union.

· Japan’s Nikkei brushed a six-week peak on Tuesday, with exporters lifted by a weaker yen and a bounce in bond yields buoying the banking sector.

The Nikkei share average ended the day up 0.35% at 21,392.10 after touching 21,438.35, its highest since Aug. 1. There were 161 advancers on the Nikkei index against 64 decliners.

The index has risen for the sixth consecutive session as an ebb in U.S.-China trade war concerns has lifted global equities.

“The market’s rise is a continuation of its recent gains. The advance has slowed, however, with a wait-and-see mood setting in ahead of some key monetary policy decisions,” said Yoshinori Shigemi, global market strategist at JP Morgan Asset Management.

· China stocks retreated on Tuesday, snapping their week-long winning streak, after data showed country's factory-gate prices had shrunk at the sharpest pace in three years in August, reinforcing the urgency for Beijing to step up stimulus.

The CSI300 index was down 0.6% at 3,950.30 points at the end of the morning session, while the Shanghai Composite Index slipped 0.4% to3,013.71 points.

· European stocks opened lower Tuesday morning after U.K. Prime Minister Boris Johnson lost a second bid to hold an early election but reiterated his pledge to leave the EU on October 31. Investors also have one eye on an impending meeting of the European Central Bank (ECB), with markets hopeful of a monetary stimulus package later this week.

The pan-European Stoxx 600 slipped 0.2% after the opening bell, utilities leading losses with a 0.6% fall while autos and banks were the main gainers, adding 0.5% each.