- US stock markets vulnerable after poor start to Q2
- US500 closed below 200 day SMA for first time in almost 2 years yesterday
- Amazon drops on Trump tweet
Whilst European markets were closed yesterday for Easter Monday, their US counterparts began the second quarter on the wrong foot with notable losses seen. Stocks across the Atlantic made their worst start to April since 1929 - the year of the Wall Street crash which preceded the Great depression. The declines can be attributed to escalating concerns surrounding trade wars and further weakness in tech stocks with Amazon and Tesla two of the worst hit. The US500 ended Monday’s session below its 200 day SMA for the first daily close under this indicator since the summer of 2016.
The US500 ended yesterday below its 200 day SMA for the first time in almost 2 years. Source: xStation
Today’s trade has seen an attempt at a recovery with the US30 and US500 showing small gains, but the tech dominated US100 remains languishing behind. Amazon had begun the session moving higher but has since fallen back after Trump took to Twitter once more to attack the firm.
Amazon is now falling back near a prior swing level around 1325 and has fallen approximately 15% since posting an all-time high of 1618 just last month. Despite the recent declines it should be pointed out that price remains well above its 200 day SMA (which is currently around 1159) and therefore the stock could be seen to remain in an uptrend from a longer term perspective.
Amazon has fallen more than 15% in recent weeks following a series of attacks from Donald Trump. Source: xStation
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