US stocks open sharply higher after China appears have back down from their stance in trade war with US. Instead of warning of retaliation to US President Donald Trump’s new tariffs, China said it would seek consultations and negotiations as resolution to trade conflicts. Furthermore, Trump later said there is a “talk scheduled for today at a different level”.
DOW opened higher today and hit as high as 26348.94. But it appears to be struggling to take out 55 day EMA again and pares back some gain as the session continues. This EMA (now at 26301) remains a major focus. As long as it holds, further fall is expected through 25440.39 at a later stage. Though, sustained trading above will turn focus back to 27398.68 high.
