Hello traders everywhere. The week had started on high note extending last weeks gains and pushing the NASDAQ high enough to trigger a new green monthly Trade Triangle at 7,566.93. In fact, both the DOW and S&P 500 were close to getting their respective monthly Trade Triangles in early trading before they started to slide lower in Monday afternoon trading.
Stocks fell Wednesday as traders grappled with key testimonies on U.S.-China trade relations, Federal Reserve monetary policy and a host of geopolitical issues.
Stocks fell to their lows of the session as U.S. Trade Representative Robert Lighthizer hinted that a trade deal was not yet certain, saying that any agreement would need to be more than just purchases by China. The deal would need to be specific and include a matter of enforcement, he said. Lighthizer also noted that it would be a "long process" to implement any deal agreed upon in March. Lighthizer was testifying in front of the House Ways and Means committee. Trade relations between the U.S. and China lowered this week after President Donald Trump pushed back a deadline on adding additional tariffs on Chinese goods.
Fed Chairman Jerome Powell testified in front of a House committee. On Tuesday, he told members of the Senate Banking Committee the central bank will remain "patient" in its approach to monetary policy. Powell also described the U.S. economic outlook as "generally favorable" but one that faces challenges from abroad.
Meanwhile, a summit between President Trump and North Korean leader Kim Jong Un got underway today.
The Trump-Kim summit comes ahead of their second summit in less than a year, with investors monitoring whether the meeting can break a stalemate over Pyongyang's nuclear weapons and end more than 70 years of hostility. President Trump said he hoped the summit will be "equal or greater" relative to last year's meeting with Kim.
Key Levels To Watch This Week:
- S&P 500 (CME:SP500): 2,681.83 - 2,815.15
- Dow (INDEX:DJI): 24,883.04 - 26,277.83
- NASDAQ (NASDAQ:COMP): 7,225.14
- U.S. Dollar (ICE:DX): 95.58
- Gold (NYMEX:GC.J19): 1,332.40
- Crude Oil (NYMEX:CL.J19): 57.39
- Bitcoin (BITCOIN:BITSTAMPUSD): 3,328.70