U.S. stocks slouched on Tuesday, with the Dow-Jones Industrial Average erasing its gains for the year, as markets were confused by a sharp escalation of the trade dispute between the United States and China. The US President, Donald Trump warned to impose a 10% tariff on $200 billion of Chinese goods and Beijing threatened it would retaliate.
S&P 500 – Daily Outlook
The U.S. stock market index SPX is trading at 2,664, down -15.25 points and -0.58%. The index is trading in the oversold zone and has already completed 50% retracement at 2,746. At the moment, SPX is likely to pull back to fill the early morning gap.
Support Resistance 2761.79 2775.45 2757.58 2779.66 2750.75 2786.49 Key Trading Level: 2768.62
Nikkei – Daily Outlook
Japanese stocks plunged to 2-1/2-week lows on Tuesday and posted the biggest daily percentage decline in three months after Chinese stocks were sold piercingly amid intensifying global trade tussles.
Japan’s Nikkei dipped -401.85 points to trade at 22,278.48 on today. Most of the selling began in response to a risk-off sentiment. Technically, the Japanese index has come out of the asymmetric triangle pattern which supported Nikkei near 22,290. For now, the same level is working as a resistance. Whereas, the support is likely to prevail near 21,952.
Support Resistance 22617.52 22774.72 22568.96 22823.28 22490.36 22901.88 Key Trading Level: 22696.12
That’s it for now, you are advised to monitor three speeches from the world central bankers. ECB President Draghi, BOJ’s Kuroda and Fed’s Chair Powell are due to participate in a panel discussion at the European Central Bank Forum on Central Banking, in Portugal on Wednesday at 13:30 (GMT). All the best!