U.S stock market continue bearish correction

Stock market drop sharply today on President Trump new tariff threat on China. The tariff announced after China imposed export control on rare earth. DJIA index down 1.58%, Nasdaq down 2.98% and S&P 500 down 2.24%. It seems the stock market on the path of bearish correction before this month FOMC meeting. As the bearish movement has strong momentum, it is better to wait until the momentum fading before start entering long positions.

Dow Jones Industrial Average (INDU)

DJIA index drop sharply today and immediately reached the 38.2% Fibonacci Retracement level. If the bearish movement continues, then traders could wait near the trend line or 50-61.8% Fibonacci Retracement level for bullish reactions. No change to the overall bullish trend yet as long as the index manage to print new higher swing low.

Jabil Inc (JBL)

JBL share prices move lower with strong bearish momentum and looks will continue to target daily SMA 200 and cluster of Fibonacci Retracement levels. There is confluence of supports around $170.00 – $185.00. Traders could use the area for reference to enter long positions. A stop level could be placed below $155.00 in case the bearish correction extended.