The major U.S. indexes moved sharply lower over the past week after President Trump announced plans to impose a 25% tariff on steel imports and a 10% tariff on aluminum imports. After the Commerce Department found that steel and aluminum imports posed a risk to national security, the Trump administration gained the authority to establish import tariffs and promised to rebuild the American steel and aluminum industries.
International markets were lower over the past week. Japan’s Nikkei 225 fell 3.25%, Germany’s DAX 30 fell 4.57%; and Britain’s FTSE 100 fell 2.26%. In Europe, European Central Bank (ECB) President Mario Draghi indicated that slack in the Eurozone economy may be larger than initially estimated and noted the slow rise of inflation. In Asia, China voted to end term limits for President Xi Jinping in a move that has some investors and human rights activists concerned. (See also: Where Does the U.S. Import Steel From?)
The SPDR S&P 500 ETF fell 2.04% over the past week. After briefly reaching February’s pivot point levels, the index moved sharply lower to March’s pivot point levels at $269.21. Traders should watch for a breakout above these levels to retest the 50-day moving average at $273.08 or upper trendline resistance at around $278.00, or a move lower to retest reaction lows at around $258.00. Looking at technical indicators, the relative strength index (RSI) fell to slightly oversold levels of 46.00, while the moving average convergence divergence (MACD) could see a near-term bearish crossover.
The major U.S. indexes declined sharply this week in response to plans to impose tariffs on steel and aluminum imports. …read more
Read more here: Stocks Plummet Amid Fears of a Trade War
Category: SPY, DIA, QQQ, IWM