Wall Street closes in the red on trade war angst

Ross J Burland FXStreet

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.

Author

Ross J Burland

FXStreet

Ross J Burland, born in England, UK, is a sportsman at heart. He played Rugby and Judo for his county, Kent and the South East of England Rugby team.

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