According to Wall Street Journal:
"The Trump administration raised tariffs Friday on $200 billion of Chinese goods, sending tremors beyond the world’s two leading economies through Asia and Europe...
Globalized trade means the bilateral spat is dealing a blow to economic growth world-wide. The International Monetary Fund in April reduced its growth forecast for 2019 to 3.3%, down from 3.6% last year, and said trade tensions could weigh on it further."
To tell you the truth, we were really hoping for a quick gap down to the low of yesterday, combined with some more panicky headlines to set up the start of a new Up Segment. Prices are still up closer to the high of yesterday. Beware of head fake.
Today's trading actions will make clear whether market participants are going to shrug off this potential start of a trade war, or if reality will sink in at some point and this current Up Trend that started on 12/26/18 will end.
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