Stock market retreat on the new tariff

The global stock market opened lower on Monday over negative sentiment on The U.S-China new tariff. Doubling down on the $200 billion tariffs imposed on China, the country decided to stop trade talks. On Monday, China officials accuse President Trump of “trade bullyism”.

The news tariff imposed received $60 billion tariff retaliation. We might see trade wars continue to intensify as U.S administration planned another tariff on $257 billion worth of China goods. Currently, Dow Jones Industrial Averages futures slumped 24 points and indicate lower opening.

Asian & European Stock market

Asian stock market mostly lower as U.S-China tariff goes in effect. The market in Japan, China, and South Korea closed for public holidays. Australia ASX 200 down 7.70 points (-0.12%) to 6,186.90. European stock market lower today. DAX Germany down 0.33%, UK FTSE down 0.22%, Euro STOXX600 down 0.19%.

Technical Analysis

Dow Jones Industrial Average (INDU)

DJIA manage to move further higher on Friday and reach new all-time high. The index also touched the top of the channel and might be ready to move down. We think the correction will hit the bottom of the channel and start moving up again to print a double top before major selling happen.

Nvidia Corp (NVDA)

NVDA saw moving inside the bullish channel while supported by moving averages. Currently, the share prices reach daily SMA 50. There is no reaction yet, and traders will wait for the bullish pattern. However, if the selling continues, traders might find NVDA share prices hit the bottom of the channel or daily SMA 200. When the share prices reach both support level, a long position is the best option to take.

Wayfair Inc (W)

We have apparent support level to watch in W share prices. The bear currently pushes the price down and almost hit the level around $130.00. Will the level act as flip level and provide the bull a ground for a new bullish leg?