Global macro overview for 31/08/2018

President Donald Trump said he would withdraw from the World Trade Organization if he would not treat the United States better by hitting the foundations of the international trading system. "If there is no change, I will withdraw from the WTO," Trump said on Thursday in an interview with Bloomberg News. He stated that the contract establishing the body "was the worst trade agreement ever concluded".

The withdrawal of the US from the WTO could have much more significance for the global economy than even the intensifying trade war with China, undermining the post-war system that the United States has helped to build.

According to Trump, the US problem is that for many years they have been "very badly" treated by the WTO and that the authority in Geneva must "change its behavior". US Trade Representative Robert Lighthizer said China's admission to the WTO in 2001 was a mistake. It has long been calling on the United States to adopt a more aggressive approach to the organization, arguing that it can not cope with a non-market economy such as China.

Lighthizer accused the WTO dispute settlement system of interfering in US sovereignty, in particular in anti-dumping cases. The United States is blocking the appointment of judges to the WTO's review body, which creates the possibility that it will cease to function in the coming years.

Let's now take a look at the SP500 technical picture at the H4 time frame. The market has made a new all-time high at the level of 291.70 and currently is consolidating the gains. The bears might soon try to fill the gape as the market conditions are now overbought, so a corrective pull-back would be welcomed. The nearest technical supports are located at 289.37, 288.62 and 287.63. The higher time frame trend is still up.

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