Trade fear to cloud the market

The trade tension between U.S-China resurges today after President Trump instructed to proceed with $200 billion tariffs on Chinese products on Friday. China’s official said in the press conference that the country will not continue negotiation if Trump carries out the tariff threat.

The negative issue from the trade might have an influence on the market. However, the market seems shrugging off the issue and focus on the company also economic result. While the reaction positive for short-term, in the long-term we might see massive reactions when the tension intensifies further.

Asian & European Stock market

Asian stock market dipped as U.S-China tension resurge. Nikkei closed for the day, Shang Hai Composite down 29.85 points (-1.11%) to 2,651.79 and Australia ASX 200 up 19.70 points (+0.32%) to 6,185.00. European stock market also traded on the negative side. DAX Germany down 0.41%, UK FTSE down 0.20%, Euro STOXX600 down 0.06%.

Technical Analysis

Dow Jones Industrial Average (INDU)

The projection of Dow Jones Industrial Averages continues to point upward inside the bullish channel. There is no change to the outlook and traders could continue holding out a long position in shares.

Kroger Co (KR)

KR gapped down after earnings result bringing the share prices near its daily SMA 200. If KR could not bounce from the daily SMA 100 & 200 then we could expect breakout below the averages followed by retest and continuation of a bearish trend.

Under Armour Inc (UA)

UA direction is downward and continuously below the bearish trendline. It is currently testing the support between $16.50 – $17.50. If the bull could not reverse the bearish pressure then we could expect UA to continue toward the daily SMA 200. On the other hand, a bounce followed by a close above the bearish trendline will lead UA to new bullish trend.