On Friday, the index started falling as traders waited for a decision on tariffs. Today, could Nasdaq index continue downward momentum? Read on and find out.
10 September, OctaFX – With regards to trading, the public hearings session on the proposed $267 billion worth of Chinese tariffs ended last week. On Friday, Trump indicated that the tariffs will go on, which led to a lengthy letter by Apple, decrying the proposed tariffs.
The company said that the tariffs will be a tax to consumers, who will be forced to pay higher prices. There are indications that China will implement non-tariff-based retaliations such as halting the purchases of US treasuries.
Could Nasdaq Index Continue Downward Momentum?
Last week, the Nasdaq index reached an all-time high of $7688 and established a strong top position as shown below. On Friday, the index started falling as traders waited for a decision on tariffs. It ended the week at the $7325 level.
The longer-term EMA (100) crossed the shorter-term EMA (50), which is a sign that the downward momentum could continue. Today, the index is likely to hit the important support of $7340 as the trade rhetoric escalates.
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