Monday, April 2, 2018

NQ Guideline For Tuesday

On Monday the S&P 500 broke decisively below its key 200-day moving average support and closed below it. However, both the Dow and the Nasdaq 100 (NQ) bounce off their 200-dma, thus prevented a massive selloff in the stock market on Monday.

Key going forward is the200-dma on the Dow and the NQ. Should they too break, look for massive selling in the stock market as margin selling would flood the market with sell orders.

President Trump started trade war with the world. On Monday China answered back announcing their list of tariff against the US, not a good sign for the world economy. And the sock market selloff should continue.

On Tuesday, key support for NQ is its 200DMA on the daily chart, now at 9330. A clear break is likely to trigger an avalanche of selling.
Image result for trump china trade war