A new round of trade war between U.S-China?

The global stock market mostly closed on labor day holidays. Stock markets which open today, are moving lower as the sentiment turned negative. Negative sentiment comes from the U.S after President Trump threatened to impose retaliatory tariff over the origin of coronavirus.

DJIA futures are currently lower more than 400 points.

Asian & European Stock market

The Asian stock market mostly closed today on the labor day holiday. Japan’s stock market down 574.34 points (-2.84%) to 19,619.35, China stock market up closed and Australia ASX 200 down 276.50 points (-5.01%) to 5,245.90. The European stock move lower. DAX Germany down  2.22%, FTSE UK down 1.97%, Euro STOXX 600 down 0.58%

Technical Analysis

Dow Jones Industrial Average (INDU)

DJIA has claimed the level above 24,250 but unfortunately the advantage will be returned to the bear. The index futures down more than 400 points which indicate lower opening and possibly lower closing. If the index closed below 24,250 then it is expected to continue the consolidation inside 22,500 – 24,250 with daily SMA 50 as the nearest support level.

Teradyne Inc (TER)

TER share prices has moved above the daily SMA 200 and currently experiencing bearish pressure. The share prices might test the daily SMA 200 soon. Traders could observe the reaction near the SMA 200 and enter long positions near the averages.

However, if major bearish breakout happen then traders might switch to short positions near the SMA 200 on retest.