Wall Street indices started lower today with the Nasdaq giving up 0.43% at 7,947.28 as China prepares $75 billion counter-tariffs on U.S. goods just to remind us that trade war is here to stay. The Dow Jones Industrial Average started 0.47% lower at 26,129, while the S&P 500 trading 0.54% lower at 2,907.90. United States New Home Sales Change (MoM)came in at -12.8 below forecasts of -0.2% in July. Yesterday, the United States Initial Jobless Claims came in at 209K, below forecasts of 216K in August 16, the Initial Jobless Claims 4-week average increased to 214.5K in August 16 from previous 213.75K.
The CBOE Volatility Index (VIX) is 8.27% higher today at 18.06 just to confirm the cautious market mood.
Nasdaq dragged down by Apple (AAPL) -0.87%, Amazon (AMZN) -0.74%, and Facebook (FB) -0.63%
Nasdaq retreats today after failure to break above the 50 day moving average for one more time in August. On the downside immediate support stands at the 7,831 the low from August 16th, while more bids will emerge at 7,783 the low band of the ascending channel. On the upside immediate resistance is at 7,950 the daily high and then at 8,054 the 50 day moving average. Traders looking to enter long positions can buy if the index manages to close above today’s high, targeting a break above 8,000 mark for profits, and can keep their long positions as far the index is trading above the 7,900 mark. A short position might be initiated if the index breaks below the 200 day moving average at 7,593. The technical analysis suggest a near-term “neutral” outlook for the Nasdaq.
The European Indices turned lower after a positive start, the FTSE 100 is 0.22 percent higher at 7,144 as the pound trades at 1.2235. DAX 30 is giving up 0.03 percent at 11,743 while CAC 40 in Paris also trades 0.02 percent lower at 5,386.