Stocks “increasingly range bound and volatile”

Markets were mostly lower on Wednesday.

The S&P 500 fell 0.5 percent and the Nikkei 225 fell 0.2 percent. The STOXX Europe 600 closed little changed.

“We think there is very strong support somewhere in the 2,700 range for the S&P 500, but we think the upside is somewhat capped until uncertainties like the China trade situation and Brexit are resolved,” said Carlos Dominguez, chief investment officer at Element Pointe Advisors.

Similarly, Alec Young, managing director of global markets research at FTSE Russell, said that stocks are “increasingly range bound and volatile”.

Esty Dwek, senior investment strategist at Natixis Investment Managers, said in a Tuesday note that the risk of a US recession “has increased” but “we still do not expect a US or global recession in 2019” and “continue to expect risk assets to grind higher in the coming months, though not at the January pace”.