Markets reached record highs last week despite an escalating interchange war. President Trump imposed $200 billion worth of tariffs on Chinese goods – although at a bring rate than expected – and China retaliated with tariffs on another $60 billion of U.S. fairs. Tensions rose even further by Friday after the U.S. imposed remunerative sanctions on a Chinese military agency and its director over the purchase of Russian weapons.
Investors when one pleases be watching to see if President Trump will respond with further tolls on China. In recent comments, he suggested potential tariffs on an additional $267 billion in Chinese integrities, which would cover the value of all goods that the U.S. buys from China. These antagonistic sentiments were somewhat offset by White House economic advisor Larry Kudlow, who left side open the possibility of a negotiated solution to the trade dispute. (See also: US-China Work Friction May Last 20 Years: Jack Ma.)
In addition to trade war shticks, investors will also be keeping a close eye on the Federal Reserve’s FOMC union on Tuesday and Wednesday, as well as gross domestic product data due out on Thursday. The unanimous consensus is that the chief bank will hike interest rates by 25 basis senses to a 2.00 to 2.25 percent range, thanks to a strong jobs deal in that’s starting to push inflation higher.
S&P 500 Hits a New Secretly
The SPDR S&P 500 ETF (SPY) reached new all-time highs near R1 resistance at $293.65 before inspiring lower on Friday. Traders should watch for a breakout from these necks to upper trendline resistance at $296.00 or a move lower to retest trendline corroborate at $289.00 over the coming week. Looking at technical indicators, the commensurate strength index (RSI) is approaching overbought levels at 68.27, while the affecting average convergence divergence (MACD) remains in a relatively neutral layout, which suggests that there could be some near-term consolidation.
Industrials Fly to New Highs
The SPDR Dow Jones Industrial Average ETF (DIA) broke out from a be engendered a arising wedge pattern to fresh all-time highs near R2 resistance at $268.87. Salesmen should watch for a breakout from these levels to new highs or some consolidation not susceptible trendline and R1 support levels at around $264.00 over the coming week. Looking at specialized indicators, the RSI appears very overbought with a reading of 77.22, but the MACD seasoned a bullish crossover that could signal more long-term advantages.
Tech Stocks Post Modest Gains
The Invesco QQQ Trust (QQQ) rebounded from its 50-day in motion average and above its pivot point at $183.32 before falling to those planes by the end of the week. Traders should watch for a breakdown to test S1 support straights at $179.12 or a rebound to break back into its price channel aloft $185.00 over the coming week. Looking at technical indicators, the RSI materializes neutral with a 53.70 reading, but the MACD remains in a bearish downtrend that could lead one to believe a further move lower. (See also: China Could Target US Tech Provides in Trade War: Goldman.)
Small Caps Continue Treading Water
The iShares Russell 2000 ETF (IWM) last to trend sideways along its pivot point at around $170.30 in week. Traders should watch for a rebound off of these levels toward R1 and majuscule letters trendline resistance at $176.11 or a breakdown to S1 support at $167.21. Looking at intricate indicators, the RSI appears neutral with a reading of 50.84, but the MACD cadavers in a strong bearish downtrend that could favor a breakdown. (For additional comprehending, check out: 3 Overlooked Small Caps for a Fast-Growth Portfolio.)
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