19th June 2018
It took its time but the 7610 long finally came good with a decent rise to 7660 as the US markets closed. Banking the final bit there turned out to be the right move as overnight we have seen another sharp decline and broken below 7600, after the US and China engaged in a new round of trade threats. China vowed to retaliate after President Trump threatened tariffs on another $200 billion in Chinese imports, deepening a trade dispute between the world’s two biggest economies. “The United States will no longer be taken advantage of on trade by China and other countries in the world,” he said. “We will continue using all available tools to create a better and fairer trading system for all Americans.” The U.S. imported $505 billion of goods from China last year and exported about $130 billion, leaving a 2017 trade deficit of $376 billion, according to U.S. government figures. The fact that America imports more from China will make it harder for Beijing to match Trump’s attacks, according to Derek Scissors, a resident scholar at the conservative American Enterprise Institute in Washington who focuses on China.
FTSE 100 Trading Signals, Forecast and Prediction
Rather than go long today (bear Tuesday after all) I am preferring to short the rallies. The 30min chart has resistance at 7615 area also with both the coral and 25ema here – so this area might well be worth a short if seen. 7650 resistance above this.
If the bears do break 7582 then we are more than likely looking at a drop to 7500, where we will probably get a dead cat bounce for a bit, before further downside towards 7350. Then probably a rally to end the year!
Bloomberg’s Asia Report here
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