The Trump administration has released a wide-ranging list of Chinese goods it proposes to be hit with tariffs, including hundreds of food products as well as tobacco, coal, chemicals and tyres, dog and cat food, and consumer electronics including television components.

Donald Trump has said he might ultimately impose tariffs on more than $500bn worth of Chinese goods – roughly the total amount of US imports from China last year. There are currently no signs of talks between the two sides. The US chamber of commerce, which has supported Trump’s tax cuts and efforts to reduce regulation of businesses, also criticised the administration’s move. “Tariffs are taxes, plain and simple. Imposing taxes on another $200bn worth of products will raise the costs of everyday goods for American families, farmers, ranchers, workers, and job creators. It will also result in retaliatory tariffs, further hurting American workers,” a chamber spokeswoman said.

11-07-2018 Dax Swing Trading Update

We are still trading as part of a bullish reaction leg. The trend remains intact above 12421. The gap lower this morning was as a result of the tariff list and price action is now likely to test that 421 level. 

We also see a clear break below the wedge support and have run into the median line on the fork. This could offer ‘retracement’ traders the perfect entry for a gap close.

However, all eyes on 421 for further clues on future swing direction.

11-07-2018 Dax Levels

We gapped the entire IB from yesterday (the two-hour opening range) and as a result we already gapped passed the support and breakout levels on the Cam pivots. If we get a full retracement today, it’s difficult to see us go past 633. If we attempt to close the gap, but fail to do so, then I am looking for a reaction around 570.

11-07-2018 Dax Action Centre Reaction

This is another ACR line set. It starts with a 4-point multi-pivot line, which I am using as the centre line. The ‘action’ is the high of the day. The opposite and equal reaction line nearly get tagged on the gap this morning. I am watching for price to test that reaction line again.