The US stock markets are again under some heavy pressure following the news of China’s retaliation. The S&P 500 broke below the September 2024 low that was keeping the selling pressure at bay for a bit.

The next key level is August 2024 low at 5210 which would be more than 16% correction from the all-time highs and a technical bear market (-20%) would be near.

Notably, China set April 10 as the date when tariffs would officially come into effect. That’s one day after the date set by Trump (April 9). So it looks like they want to keep some time to reach some deal although we’ve got discordant news for potential negotiations.

Nevertheless, if nothing happens until then and the Fed doesn’t do anything, then markets will continue to suffer.

This article was written by Giuseppe Dellamotta at www.forexlive.com.