Stock Market Plunged Today，Where Will It Go Next 股市今天暴跌，下一步会走向那里

Today the US stock market plunged: Dow -764 (2.9%), S&P500 -87.99 (-3%), Nasdaq Composite -280 (3.5%), Russell 2000 -46.06 (-3%)) at the close. US stock index futures continue to drop after the market close. At 4:15 Pacific Time Dow, S&P 500, Nasdaq 100 and Russell 2000 futures are down 376, 40, 113 and 21 respectively. Stocks will likely go down again tomorrow and 200 day moving averages will be tested, they are Dow 25556, S&P500 2790, Nasdaq composite 7552 and Russell 2000 1519. In case theses levels are broken the December lows (Dow 24680, S&P 500 2729, Nasdaq Composite 7292, Russell 2000 1460) may be revisited.

Reasons for the recent market weakness include:

1. Highly expected 0.25% rate cut has come and gone, stock market had moved up before the event and investors are selling the news.

2. Most influential earnings are reported and investors are taking profit regardless the reports are good or bad. These are evident in FAANG (FB, AMZN, AAPL, NFLX, GOOG) stocks.

3. Trump initiated a 10% tariff on 300 billion dollar of Chinese products and China depreciated the RMB and stopped the purchases of US agriculture products in revenge. The ball is now on Trump's court and he may increase tariff further. US/ China trade deal is far from reached.

4. The Dow, S&P 500 and Nasdaq Composite are all solidly below their 50 day moving averages and are on their way to 200 DMA. The Dow dropped below its 200DMA briefly and closed above it but will likely be retest due to today's huge downside momentum.

5. General strike in businesses, markets and school are on in Hong Kong and the city is paralyzed. There is a danger that Chinese government will take control of Hong Kong if situation is out of control.

今日美国股市暴跌：收盘时道指-764（2.9％），标准普尔500 -87.99（-3％），纳斯达克综合指数-280（3.5％），罗素2000 -46.06（-3％）。美国股指期货在收盘后继续下跌。太平洋时间4点15分，道指，标准普尔500指数，纳斯达克100指数和罗素2000指数期货分别下跌376, 40, 113和21。明天股市可能再次下跌，200日移动均线可能会受到测试，它们是道琼斯25556，标准普尔500指数2790，纳斯达克综合指数7552。如果这些指数水平被击穿，6月低点（道琼斯24680，标准普尔500指数2729，纳斯达克综合7292 ）可能会重新被测试。

近期市场疲软的原因包括：

1。高度预期0.25％的降息已经过去，股市在此之前已经上涨，投资者正在抛售这一消息。

2。最有影响力的财报已报出，无论报告好坏，投资者都在获利抛售。这些现象在FAANG（FB，AMZN，AAPL，NFLX，GOOG）股票中表现得很明显。

3。特朗普对3000亿美元的中国产品征收10％的关税，而中国则贬值人民币，并停止购买美国农产品进行报复。下一步就轮到特朗普采取行动，他可能会进一步提高关税。美国/中国的贸易协议遥遥无期。

4。道琼斯指数，标准普尔500指数和纳斯达克综合指数均稳稳地低于50日移动均线，并且正在走向200日均线。今天道琼斯指数短暂跌破200日均线但收于该水平之上，但由于今天的下行势头巨大，该水平可能会重新被测试。

5。企业，市场和学校的总罢工在香港进行中导致城市瘫痪。如果局势失控，中国政府有可能出手控制香港。