Trump says he is close to doing a deal with China
The Nasdaq index is down and trading at new session lows.
The price got a boost on a headline saying Trump is close to doing a deal with China, but then added “he does not know if he wants to do it”. He added that “he likes the deal he has now.”
Earlier today, Pres. Trump boasted that “Billions of Dollars are pouring into the coffers of the U.S.A. because of the Tariffs being charged to China, and there is a long way to go.”
Well…maybe so, but is it the consumer/US companies who are being taxed via higher prices?
Time will tell. It is still early in this whole China/US trade war but risks are very high, but the G20 meeting this weekend will be a key start for a potential deal.
Technically, the price of the Nasddq index has moved back below the 200 hour MA at 7253.47. The price has been moving above and below the level today, but the last dip is trying to put more room between the MA and the price.
Looking back on November 7 and 8, the price made a similar move above the 200 hour MA and failed. If the price is to go higher from here, that MA needs to be broken back to the upside (and stay above). Right now, The bias has tilted more to the downside. Traders need to be cautious.
Below, the 100 hour MA comes in at 7176.29. A move below that level will weaken the technical picture more for the tech heavy Nasdaq. Right now the waters are muddy with concerns about more weakness.
PS the S&P index is also trading to a new session low. The price of that index moved above its 100 and 200 hour MAs at 2711-17 and remains above that level at 2724. A move below would not be welcomed by traders but right now, the buyers are more in control (at least in the short term).