Search ForexCrunch

 

  • The Dow Jones Industrial Average DJIA  shed 237.92 points, or 0.9%, to 25,347.77.
  • Trump said  on Chinese products could go up “very substantially.”

Wall Street gave up gains, plummeting midday on trade war noise as the news hit the wires that Trump, speaking at a joint news conference Monday in Tokyo with Japanese Prime Minister Shinzo Abe, said the U.S. wasn’t ready to make a trade deal with China. “They (China) would like to make a deal. We’re not ready to make a deal,” Trump said, according to Bloomberg. He added that tariffs on Chinese products could go up “very substantially.” as a result,  The Dow Jones Industrial Average DJIA, -0.93%  shed 237.92 points, or 0.9%, to 25,347.77, while the S&P 500 index SPX, -0.84%  fell 23.67 points, or 0.8%, to 2,802.39. The Nasdaq Composite Index COMP, -0.39%  dropped 29.66 points, or 0.4%, to 7,607.35.

DJIA levels

While below the 26000 psychological target, (50% Fibo of May swing high low range), short term stochastics had corrected higher giving more room for the bears to capitalise upon. A break to the 25200s guard a run to 24500s and then 50% of the upside run made at the end of Dec at 24150. On the upside, a break above 50% Fibo and 25620s and the descending resistance could be a challenge ahead of the 61.8% Fibo and 25700s. Bulls would then target an eventual break of 26000 which opens the 38.2% Fibo target at 26126 ahead of the 26300s, around the Nov and Fed peaks.