Futures on the SP500 index were trading 1.4% lower during the morning session on Tuesday and the index was seen hovering around 2,735 USD after another risk-off wave has hit the markets.
Earlier in the day, Donald Trump directed the U.S. Trade Representative to identify 200 billion USD worth of China goods for additional 10% tariffs.
“Further action must be taken to encourage China to change its unfair practices, open its market to United States goods and accept a more balanced trade relationship with the United States,” Trump said in a statement.
The trade wars have begun and China immediately pledged to take strong measures, should the US continue to place tariffs on new list of goods.
The index is now testing the first major support of previous highs, which is located near 2,740 USD. If bears will be stronger further, the price could decline to previous lows near 2,700 USD, where the 100 day moving average is also seen.
On the upside, should the dip be bought later in the day, which is the usual tactic, the first resistance is now at 2,750 USD and afterward around 2,760 USD. In all cases we strongly recommend to have rigorous money and risk management.
Disclaimer: The content of the Reports constitutes Marketing Communication and does not constitute Investment Advice or Investment Research or an offer for any transactions in financial instrument. The content of the Reports represents the view of our experts on a generic basis, and does not take into consideration individual readers personal circumstances, investment experience or current financial situation. In addition, the Reports have not been prepared in accordance with legal requirements designed to promote the independence of Investment Research, and are not subject to any prohibition on dealing ahead of the dissemination of Investment Research. Readers using the Reports should consider the possibility of encountering substantial losses. The past performance is not a guarantee of future results. Therefore, Goldenburg Group Limited shall not accept any responsibility for any losses of traders due to the use and the content of its Reports.