Major blow for U.S stock market & the world?

U.S stock market might be under big fire as the futures down more than 300 points before market open. The strong bearish sentiment caused by the departure of Gary Cohn from White house. The departure of chief of National Economic Council, Gary Cohn assumed by the market as the move to a protectionist economy.

The situation is a hot issue right now as President Trump also insists on rising tariff of imported steel and aluminum. The President also threatened to impose autos tariff if European Union reacted negatively to the tariff decision.

The wrong reaction could lead to trade wars, and IMF Lagarde warned,” There is nobody wins in a trade war.”

Asian & European Stock market

Asian stock market slide today on trade wars reaction. Nikkei down 165.04 points (-0.77%) to 21,252.72, Shang Hai Composite down 18.18 points (-0.55%) to 3,271.46 and Australia ASX 200 down 60.40 points (-1.01%) to 5,902.00. European stock market also pointed downward. DAX Germany down 0.14%, FTSE UK up 0.05%, and Euro STOXX 600 down 0.24%.

Technical Analysis

Dow Jones Industrial Average (INDU)

DJIA could move below the daily SMA 100 today following the strong bearish sentiment across the global market. The break below the SMA 100 has a downward target at SMA 200. Traders suggested to stay sideline for now and watch the growing situation of trade wars prospect.

Baidu Inc (BIDU)

BIDU moved inside the channel as shown on the daily chart. The share prices currently sit at the top of the channel, will it respect the channel? Traders could use the moment to look for a short position with possible thrust upward before the share prices turned lower. A stop above $270.00 is preferable for short position.