Wall Street analysis: DJIA at fresh weekly lows
|- Trade-war spreading like wildfire undermines demand for high-yielding equities.
- Dow Jones Industrial Average falls ahead of the opening, down for an eighth consecutive day.
US equities are under strong selling pressure and no far from fresh weekly lows, as fears dominate the financial world over the escalating trade-war. Today is no longer about the US and China, as different economies are announcing countermeasures to Trump's decision about imposing tariffs on steel and aluminum imports. On Wednesday, the EU announced that will start charging import duties of 25% on US products starting this Friday, while today the Turkish government imposed tariffs of $266.5 million on $1.1 billion worth of US goods. Furthermore, the Chinese Commerce Ministry stated that the unpredictable US behavior needs strong responses and that the country is ready to fight to the end in this trade-war battle.
The DJIA is trading at 24,600 down from Wednesday's close at 24,657.80 and declining for an eighth consecutive day. The S&P managed to close with modest gains yesterday at 2,767.32, now down measly 2 points.
The Dow's daily chart indicates that the index could accelerate its slump, breaking below the 100 and 200 DMA and moving further below the 20 SMA, as in the daily chart, technical indicators gain downward traction in negative territory. The pair is also challenging the base of an ascendant channel coming from this year low, although it failed to confirm a break below it despite piercing it multiple times these last few months. May 29th low at 24,243 is now a probable bearish target and a mid-term relevant support.
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