Plenty of red ink as Trump’s threat of trade tariffs spooked global markets, with fears of a global trade war.
China’s Shanghai Composite Index is headed for a test of primary support between 3000 and 3060 with a falling Trend Index warning of strong selling pressure.
South Korean investors are more spooked by Trump’s trade tariffs than Kim Jong-un’s nukes. The Seoul Composite Index retreated below support at 2450, while bearish divergence on the Trend Index warns of strong selling pressure. Breach of 2350 would signal a primary down-trend. Breach of 2300 would confirm.
Japan’s Nikkei 225 Index is falling hard. Breach of support at 21000 offers a target of the September 2017 low at 19250.
India’s NSE Nifty Index is testing primary support at 10000.
Europe is in the same basket, with Dow Jones Euro Stoxx 600 testing primary support at 365.
The Footsie broke primary support at 7100 to signal a primary down-trend.
In the US, the Nasdaq 100 is likely to test primary support at 6200 but this looks like a secondary correction, with the Trend Index still positive.
The S&P 500 is similarly headed for a test of primary support between 2500 and 2550. Breach would signal a primary down-trend but Twiggs Volatility Index is currently in the amber zone, between 1% and 2%, suggesting that the correction is secondary in nature. For more on the Volatility Index, see Market Volatility and the S&P 500.
Canada’s TSX 60 also signals strong selling pressure. Breach of 880 would signal a primary down-trend.
As the market flees from risk, two of the traditional safe havens — the Dollar and the Japanese Yen — are under threat from a trade war. Which leaves Gold as the last man standing.