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  • The Dow Jones Industrial Average lost 66 points, or 0.3%, to end around 26,440.
  • The Nasdaq Composite COMP was down 0.5% to end around 8,123.
  • The S&P 500 down over 0.4% to end near 2,932.

Wall Street’s benchmarks  offered some impressive two-way business on Monday, following the trade tantrums.  However, the indexes remained in the red with the S&P 500 down over 0.4% to end near 2,932 while the Dow Jones Industrial Average lost 66 points, or 0.3%, to end around 26,440. The Nasdaq Composite COMP was down 0.5% to end around 8,123.

Analysts at ANZ Bank explained:

Seeking to ramp up pressure for more concessions, Trump yesterday threatened to more than double tariffs (from 10% to 25%) on USD200bn of Chinese goods starting Friday, in a series of tweets. Markets across Asia were particularly hard hit yesterday, not helped by comments that China was considering delaying the trade talks. However, markets got a bit of reprieve overnight on news that China’s Liu would indeed travel to Washington this week for negotiations, with China appearing to be seeking a middle ground. But words and uncertainty matters. Looking beyond the rhetoric, there has been a dramatic slowdown in global trade volumes this year. Global trade volumes actually fell 1% in the year to February, after growth of about 5% since 2017. Continued trade uncertainty won’t be helping that.

Update to trade wars: China still plans to move forward with talks – South China Morning Post

DJIA levels

Technically, while the DJIA stabilised, it has proven its fragility on the downside to geopolitical tensions which have started to flare up again, and not just on both sides of the Pacific but in the middle east as well concerning Iran. The move has taken out the 38.2% Fibo and 1st April gap lows which now exposes a run to the 50% Fibo and end of quarter close at 25949 with the confluence of the 50 DMA. A break of that 26000 level with closes below it opens risk to the 23.6% Fibo retracement of the late Dec rally at 25500 guarding 25300 (200 D SMA). A break all the way down to the 24800 gap area would come into target ahead of the 24500s and then 50% of the upside run made at the end of Dec at 24150. On the flipside, should bulls follow through in this recovery, a target of 26800/951(record highs) comes into play.