|Day's Range||7,304.32 - 7,371.30|
|52 Week Range||5,895.12 - 7,851.97|
On Thursday, a number of firms released news reports warning the trade war was getting worse including economists and strategists from Nomura, Goldman Sachs and Bank of America.
Renewed concerns over U.S.-China trade relations were the catalysts behind the early weakness as investors started to price in the possibility there would be no short-term trade deal and that the current trade dispute could escalate into the end of the year or beyond. The selling pressure increased following reports that showed a slowdown in the U.S. manufacturing and services sectors. The raised fears that the U.S.-China trade dispute is slowing the economy.
Based on Thursday’s price action and the close at 7311.00, the direction of the next move is likely to be determined by trader reaction to the short-term Fibonacci level at 7314.75.
The Fed minutes had little impact on stock prices as it was already priced into the market. The minutes were largely interpreted as accommodative, which tends to be supportive for stocks. Fed policymakers agreed the current accommodative policy can remain for now and that they were comfortable with the wait-and-see approach.
The British pound fell below 1.27000 on Tuesday, declining in eleven of the last 12 trading sessions. Hopes for agreement with the opposition are not yet justified, which returns to the markets the factor of uncertainty and fears of Brexit without a deal.
Based on the today’s price action and the current price at 7462.25, the direction of the June E-mini NASDAQ-100 Index into the close is likely to be determined by trader reaction to the long-term uptrending Gann angle at 7447.50.
Alphabet and some other American IT companies have suspended business with Huawei, which is one of the first examples of major consequences for a Chinese company being blacklisted by the US government. In addition, US warships cruised near disputed islands in the China Sea.
Based on the early price action, the direction of the June E-mini NASDAQ-100 Index the rest of the session is likely to be determined by trader reaction to the 50% level at 7422.50 and the uptrending Gann angle at 7431.75.
If the U.S.-China trade talks have indeed stalled as reported late Friday then investors are going to start pricing in a longer stalemate and this will likely mean more long liquidation and fresh short-selling.
The U.S – China trade war continued to grip the markets and, while the China economy showed cracks, U.S stats impressed.
Based on the early price action and the current price at 6565.50, the direction of the June E-mini NASDAQ-100 Index into the close is likely to be determined by trader reaction to the short-term 50% level at 7584.75.
China could have a direct effect on corporate earnings and therefore future stock prices if it chooses to make life more difficult for U.S. companies doing business in China. Analysts say China has encouraged consumer boycotts in the past, and used inspections and regulatory harassment against foreign firms and could do so again.
The U.S. equities rise as strong earnings and data support the market, but the gains were capped by escalating trade tensions.
The price action also reflected how sensitive investors have become to trade news in the wake of the near breakdown of U.S.-China trade talks and an escalation of the trade dispute with the addition of new tariffs.
Going into the last two hours of trading, the support is the main 50% level at 7422.50, an uptrending Gann angle at 7384.00, a main Fibonacci level at 7314.75 and the minor bottom at 7290.00. On the upside, the first target is the short-term 50% level at 7584.75.
After the close on Tuesday, CNBC’s Jim Cramer said that the stock market saw a “genuine rally, and that is a bullish sign.” President Trump picked up some support for his aggressive tariffs on China late Tuesday. Former Goldman Sachs CEO Lloyd Blankfein said the Unites States may be feeling the pain of tariffs now, but they will hurt China in the longer term.