Monday, 5 August 2019

The Chinese strike back

US equity indexes closed powerfully lower, sp -87pts (3.0%) at 2844. Nasdaq comp' -3.5%. The two leaders - Trans/R2K, settled -3.2% and -3.0% respectively. Near term outlook offers initial Tuesday upside, but set to fail, as the 200dma in the sp'2790s is minimum downside target.




US equities opened very significantly lower, as the Chinese Yuan crossed above 7.00 to the USD. There is near zero doubt this is direct retaliation to last Thursday's announcement that the US will add an additional 10% tariff.

Trump not surprisingly issued an initial response...

Regardless, the market sure wasn't happy, with price broadly falling into late afternoon. The closing hour saw a spike from 2822 to 2852, and whilst Tuesday offers further bounce upside, an eventual test of the 200dma - currently at 2790, appears extremely likely. 

Volatility naturally soared, with the VIX settling +39.6% to 24.59.

Full moon is Thurs' Aug'15th
Extra charts in AH (usually around 7pm EDT) @

Goodnight from London
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