US30 short-term low forming after 2-days of heavy selling?
The last two sessions have produced a 944 point sell-off on the US30 hitting very quickly, last night’s session in particular could have caught a few out. Sellers really kicked into gear last night wiping 542 points off the US30 indexes value.
So why have we seen such a violent more lower? Well there are a few influences at the moment that have been worrying equity traders. Reports showed a slowing in September for both manufacturing and hiring. This strokes current recession worries that are persisting from some regarding the future of the U.S economy. The new push from the democrats for the impeachment of President Trump, a main concern from investors is that impeachment proceedings will undermine trade negotiations, especially with China.
New Tariff push, (this time Europe) President Trump won a biggest-ever WTO ruling, opening the door for $7.5 billion of tariffs on Europe. This furthers worry about global trade and growth, which is already weakened due to the ongoing trade dispute between the US and China.
If this week couldn’t be more uncertain for the US30 we have U.S. employment data to cap it off from 10:30 pm AEST tomorrow night.
Looking at the current US30 daily chart it’s not hard to miss the recent sell-off, but it has started to stall at an interesting level. 25970 has held sellers back since late August, last night’s test and hold was the third test. This level is forming and worth watching but is far from confirmed! Anther point price remains in what looks like a demand area, price hasn’t traded below this area since the 26th of August.
Overall the US30 remains in a long-term uptrend but the the medium trem trend, for now, remains down. Buyers should give price time to work it’s self out before thinking about new long ideas. Sellers that have missed the last two sessions might be better placed to look for a new faily rally to fade or a confirmed break of the current support point.