Wall Street plunges… again

Escalating concerns over a trade war triggered a major setback in US equities, with the DJIA losing over 700 points to settle below the 24,000 mark. The Nasdaq Composite and the S&P lost over 2% each, to close the day at 7,166.68 and 2,643.70 respectively.

News that US President Trump plans to impose additional  tariffs on China, accusing the country of stealing American economy revived fears of a trade war, moreover, after China responded that they will fight back, according to words from the Chinese Ambassador to the US, Cui Tianki. Tianki said  "we will retaliate. If people want to play tough, we will play tough with them, and see who will last longer."

Further fueling risk aversion where headlines indicating that Trump's lawyer, John Dowd, resigned or was fired. Dowd, was in charge of defending Trump in the special counsel investigation, and of course, he left after Trump wanted a more aggressive posture on the matter.

Technical Outlook

The DJIA posted its lowest settlement since early February when index plummeted over 1,500 points after Fed's head Powell suggested a faster pace in rate hikes for this 2018, later denied by the dot-plot.  Technically, the main support from here is the 200 DMA, at 23,790, from where the index bounced back then. A break below it will fuel panic selling and could be the beginning of the major correction the index needs after running for over eight years.