More Monday Blues

U.S. markets showed weakness for the 3rd-straight Monday as chatter over the trade war with China was back in the spotlight. President Trump again lowered hopes for a truce in the trade war with China, saying that he would be fine if trade talks scheduled for September do not happen.

The Dow was down 1.5% after testing an intraday low of 25,824. Prior and upper support at 26,000-25,750 was triggered and failed to hold with a close below the latter signaling additional weakness towards 25,500 and the 200-day moving average.

The Russell 2000 fell 1.2% following the fade to 1,491 ahead of the closing bell. Major and upper support at 1,500-1,490 was tripped and failed to hold with a close below the latter signaling a retest towards 1,480-1,470 and the monthly low of 1,472.

The Nasdaq dropped 1.2% after testing a first half low of 7,833. Near-term and upper support at 7,850-7,800 was violated but held with downside risk towards 7,700-7,650 on a close below the latter.

The S&P 500 also gave back 1.2% following the backtest to 2,873 and close back below the 2,900 level. Current and upper support at 2,875-2,850 was breached but held with a close below the latter getting 2,825-2,800 and the 200-day moving average in play.

There was no sector strength. Financials were the weakest sector after sinking 1.9% while Materials and Consumer Discretionary were lower by 1.6% and 1.5%, respectively.