Dow and Nasdaq 100 hit by further selling, while DAX moves higher
US indices have been hard hit by the public spat between president Trump and Jerome Powell, but the Dax has made some headway in early trading.
Dow retreat continues
US markets slumped yesterday as the Trump-Powell drama intensified, continuing to unwind much of the ground gained from the 90-day tariff pause.
The Dow Jones touched 38,000 yesterday before an overnight rally, but the bearish view remains in place after the lower high of 41,000 from mid-April. From here the lows just below 37,000 are the next target. A daily close below 37,500 would mark a fresh bearish development on the daily chart.
After such a one-way move over the last week we may see a short-term bounce, but it needs to clear 40,000 to suggest that a low has formed.
Nasdaq 100 under pressure
This Nasdaq 100 index continues to wind the gains made earlier in April, and may well push towards the month’s lows in due course.
Having created a lower high at 19,235, the overall view continues to lean bearish. While the index is bouncing from its overnight low, the price will need to make some firm progress towards 19,000 to suggest that the selling has been halted. The month’s lows around 16,400 remain the initial downside target.
DAX solidly higher
Thin trading yesterday drove DAX 40 futures to a one-week low, but the price has rebounded in early trading, recovering 21,000.
Further gains would target the 9 April high at 21,560, and then on to 22,000. European markets continue to hold up better than their US counterparts, holding on to more of the tariff pause gains. A close back below 20,400 would put a dent in the bullish view.
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