U.S stock futures on bearish side after tariff war kick-off

President Trump latest tariff announcement caused the retreat on global stock market. At the current time, DJIA futures is lower 125 points (0.29%), S&P500 futures lower 28.75 points (0.49%) and Nasdaq down 106 points (0.56%). Traders are expecting retaliation toward the tariff which could put more pressure on the stock market.

At the current time, a downward movement might continue and traders better await sideline until the bearish pressure receded. A good buying opportunities will present itself after the bearish movement completed.

Technical Analysis

Dow Jones Industrial Average (INDU)

DJIA index made a bearish engulfing pattern close yesterday which confirm a bearish continuation. The index might continue the bearish movement toward the daily SMA 200. Under current situation, traders will wait near lower support level for bullish reactions. When there are bullish reactions, traders could add more long positions targeting record high in the index.

Amazon, Inc (AMZN)

AMZN share prices retracing after the $242.52 top. The retracement almost reaches the daily SMA 200 where a bullish reaction might happen. At the current time, the share price’s long-term trend is bullish. Which mean, it is better to take long positions when the price reach support level. Traders will wait for bullish reactions and enter long positions with stop order below $195.00