U.S stock market no bullish reaction

The trade war has been commenced and U.S. stock market fall victim to sell-off. We see major indices’ pullback almost 20% from the top and there is no sign of bottoming yet. Today, the market mostly driven by retaliation from China toward tariff slapped by Trump’s administration. We might see more country retaliate and causing the stock market to continue its downward movement.

There will be speech by Powell regarding interest-rate, it might put a breaker to the current downward movement.

Technical Analysis

Dow Jones Industrial Average (INDU)

DJIA index has reached the double top target at 39,000 today, which is rather extreme. However, traders will remember in mind that bull market building slowly to the top. While bear market could wipe most of the gain in just days or weeks. We have seen panic selling now, which is the reason for short-term bounce. However, the selling might not be over as the traders observe more reactions from the global market situation.

It might be the best time to stay sideline and observe the market situation and snap back long positions when the selling pressure dissipate.