U.S. markets opened Monday’s session with substantial losses following a weekend tweet from President Trump that trade talks with China are moving too slowly and that he plans on raising tariffs to 25% this Friday. The unexpected news hit the major indexes with losses well north of 1% before a quick rebound recovered half the losses roughly an hour later.
The rest of the session was mostly flat with the final hour of trading seeing additional strength on news that a Chinese delegation was still headed to Washington this week. Volatility spiked to its highest level since late January while closing above 15 and a level that had been holding for 26-straight sessions.
The Nasdaq dropped 0.5% after opening at a session low of 7,981. Prior and upper support at 8,075-8,025 was breached but held with a close below the 8,000 level being a bearish development.
The S&P 500 also fell 0.5% after trading to a morning low of 2,898. Major and lower support at 2,925-2,900 was breached but held on the close above the former with risk towards 2,875-2,850 and the 50-day moving average on a close below the latter.
The Dow declined 0.3% following the opening pullback to 26,033. Major and lower support at 26,250-26,000 held with the latter and the 50-day moving average holding into the closing bell?
The Russell 2000 was up 0.1% despite the opening backtest to 1,588. Support at 1,585-1,570 was breached but held with a close below 1,565 and the 50/200-day moving averages being a warning sign for lower lows.
Healthcare was up 0.5% and was the only sector to show strength.
Materials sank 1.5% to lead sector weakness. Industrials and Technology were down 1% and 0.8%, respectively.
I hope this helps you prepare for the trading day. Make it a great one!