|Day's range||7,417.07 - 7,472.71|
|52-week range||5,895.12 - 7,851.97|
Alphabet and some other American IT companies have suspended business with Huawei, which is one of the first examples of major consequences for a Chinese company being blacklisted by the US government. In addition, US warships cruised near disputed islands in the China Sea.
Based on the early price action, the direction of the June E-mini NASDAQ-100 Index the rest of the session is likely to be determined by trader reaction to the 50% level at 7422.50 and the uptrending Gann angle at 7431.75.
If the U.S.-China trade talks have indeed stalled as reported late Friday then investors are going to start pricing in a longer stalemate and this will likely mean more long liquidation and fresh short-selling.
The U.S – China trade war continued to grip the markets and, while the China economy showed cracks, U.S stats impressed.
Based on the early price action and the current price at 6565.50, the direction of the June E-mini NASDAQ-100 Index into the close is likely to be determined by trader reaction to the short-term 50% level at 7584.75.
China could have a direct effect on corporate earnings and therefore future stock prices if it chooses to make life more difficult for U.S. companies doing business in China. Analysts say China has encouraged consumer boycotts in the past, and used inspections and regulatory harassment against foreign firms and could do so again.
The U.S. equities rise as strong earnings and data support the market, but the gains were capped by escalating trade tensions.
The price action also reflected how sensitive investors have become to trade news in the wake of the near breakdown of U.S.-China trade talks and an escalation of the trade dispute with the addition of new tariffs.
Going into the last two hours of trading, the support is the main 50% level at 7422.50, an uptrending Gann angle at 7384.00, a main Fibonacci level at 7314.75 and the minor bottom at 7290.00. On the upside, the first target is the short-term 50% level at 7584.75.
After the close on Tuesday, CNBC’s Jim Cramer said that the stock market saw a “genuine rally, and that is a bullish sign.” President Trump picked up some support for his aggressive tariffs on China late Tuesday. Former Goldman Sachs CEO Lloyd Blankfein said the Unites States may be feeling the pain of tariffs now, but they will hurt China in the longer term.
2019 was bountiful with IPO’s hitting the market so far, 16 priced Initial Public Offerings on the New York Stock Exchange and 61 on NASDAQ so far this year.
Traders should be looking for comments on whether Clarida feels a prolonged trade dispute will have a negative effect on the U.S. labor market and inflation.
Remember the steep break from October to late December? It was blamed on the Fed’s hawkish monetary policy. Stocks took off after the US and China started talking and the Fed turned dovish. The US and China never signed a deal, but the Fed held rates steady. Yet the S&P 500 Index and the NASDAQ Composite still hit new all-time highs.
Based on the current price at 7589.00, the direction of the June E-mini S&P 500 Index into the close is likely to be determined by trader reaction to yesterday’s close at 7595.25.
After months of quiet trade, a gauge of investor anxiety, rose for the fourth consecutive session and is at its highest level in more than four months. The CBOE Volatility Index, a measure of the 30-day implied volatility of the S&P 500 known as the “VIX” or the “fear gauge,” hit a fresh high of 23.38 on Thursday, its highest level since January 4.
Based on the current price at 7580.00, the direction of the June E-mini NASDAQ-100 Index into the close is likely to be determined by trader reaction to the 50% level at 7577.75.
Just a short while ago, President Trump said he has an “excellent” alternative to a possible trade deal with China, as Chinese officials are set to meet U.S. trade negotiators later in the evening in Washington. Prior to his comments, the Dow was down over 400 points.
Based on the early price action, the direction of the June E-mini NASDAQ-100 Index is likely to be determined by trader reaction to the downtrending Gann angle at 7559.50.