- U.S. futures fell on Monday after U.S. President Donald Trump requested for $200 billion in Chinese goods be identified for potential additional tariffs.
- The implied open for the Dow Jones industrial average was more than 220 points to the downside as of 12:03 a.m. ET.
- U.S. stocks closed moderately lower on Monday amid trade jitters.
U.S. futures fell after U.S. President Donald Trump’s Monday evening announcement that he had asked for $200 billion worth of Chinese products to be identified and potentially subject to additional tariffs.
The implied open for the Dow Jones industrial average, based on futures, was more than 220 points to the downside at 12:03 a.m. ET. Other stock index futures also pointed to declines, with S&P 500 e-mini futures down 0.95 percent and Nasdaq futures lower by 1.07 percent.
In a statement released Monday, Trump said he had requested the U.S. Trade Representative to identify $200 billion in Chinese goods for additional tariffs at a rate of 10 percent.
The duties would take effect “if China refuses to change its practices” and if Beijing went ahead with new tariffs it had recently announced, the statement added.
Trump “has to carry out this threat because the Chinese were so quick and prompt in retaliating. I think the stock market correction will get worse from here,” said Komal Sri-Kumar, president of Sri-Kumar Global Strategies. “It has gone from bad to worse and it was completely predictable it would go from bad to worse.”
The latest development in the ongoing trade dispute between the world’s two largest economies came after the Trump administration announced last week that it will put a 25 percent tariff on up to $50 billion in Chinese goods. An initial list of $34 billion worth of Chinese products will be subject to duties on July 6.
In response, China announced tariffs it will impose on U.S. goods worth the same total amount, with duties on $34 billion in U.S. products also set to take effect early in July.
U.S. markets had closed moderately lower on Monday, with the Dow closing down 103.01 points at 24,987.47 amid investor concerns over the escalation in trade tensions.
Overall, the bias in prices is: Sideways.
By the way, prices are vulnerable to a correction towards 24,806.85.
The projected upper bound is: 25,560.15.
The projected lower bound is: 24,456.98.
The projected closing price is: 25,008.56.
A white body occurred (because prices closed higher than they opened).
During the past 10 bars, there have been 4 white candles and 6 black candles for a net of 2 black candles. During the past 50 bars, there have been 25 white candles and 25 black candles.
A long lower shadow occurred. This is typically a bullish signal (particularly when it occurs near a low price level, at a support level, or when the security is oversold).
Momentum is a general term used to describe the speed at which prices move over a given time period. Generally, changes in momentum tend to lead to changes in prices. This expert shows the current values of four popular momentum indicators.
One method of interpreting the Stochastic Oscillator is looking for overbought areas (above 80) and oversold areas (below 20). The Stochastic Oscillator is 30.0860. This is not an overbought or oversold reading. The last signal was a sell 3 period(s) ago.
Relative Strength Index (RSI)
The RSI shows overbought (above 70) and oversold (below 30) areas. The current value of the RSI is 52.82. This is not a topping or bottoming area. A buy or sell signal is generated when the RSI moves out of an overbought/oversold area. The last signal was a buy 91 period(s) ago.
Commodity Channel Index (CCI)
The CCI shows overbought (above 100) and oversold (below -100) areas. The current value of the CCI is -15. This is not a topping or bottoming area. The last signal was a sell 3 period(s) ago.
The Moving Average Convergence/Divergence indicator (MACD) gives signals when it crosses its 9 period signal line. The last signal was a sell 0 period(s) ago.
Rex Takasugi – TD Profile
DJ INDU AVERAGE closed down -103.010 at 24,987.471. Volume was 13% below average (neutral) and Bollinger Bands were 29% narrower than normal.
Open High Low Close Volume___
Short Term: Neutral
Intermediate Term: Bullish
Long Term: Bullish
Moving Averages: 10-period 50-period 200-period
Close: 25,160.18 24,633.10 24,213.16
Volatility: 10 14 18
Volume: 350,742,592 349,396,736 374,468,448
Short-term traders should pay closer attention to buy/sell arrows while intermediate/long-term traders should place greater emphasis on the Bullish or Bearish trend reflected in the lower ribbon.
DJ INDU AVERAGE is currently 3.2% above its 200-period moving average and is in an upward trend. Volatility is relatively normal as compared to the average volatility over the last 10 periods. Our volume indicators reflect volume flowing into and out of .DJI at a relatively equal pace (neutral). Our trend forecasting oscillators are currently bullish on .DJI and have had this outlook for the last 9 periods.
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