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Yesterday, DJIA plunged 617.4 points (or, 2.4%) to 25222.5 while S&P500 plunged 69.5 points (or, 2.4%) to 2811.9. That came after China gave a reply to US tariff hike from 10% to 25% for goods imported by US from China totaling USD200 billion. The reply is a Chinese tariff hike to 25% for goods imported by China from US totaling USD60 billion. 

To be fair, the signs of a potential temporary top in US stock markets was present for the past 1-2 weeks. The MACD indicators for both DJIA and S&P500 show bearish divergence despite going higher from February to April. In early May, the -DMI crossed above +DMI signaling a potential reversal for both DJIA & S&P500. With these indices breaking below the 50-day SMA lines, the temporary top is in, and we will likely see a decline to at least 24000 for DJIA and 2650 for S&P500.
Chart 1: DJIA daily chart as at May 13, 2019 (Source: Stockcharts.com)

Chart 2: S&P500 daily chart as at May 13, 2019 (Source: Stockcharts.com)

Meanwhile, FBMKLCI tested the lower boundary of a downward wedge formation (aka a bullish wedge!) at 1600 yesterday. It is likely the index will break thru this level today. The next support level will be at 1550.

Chart 3: FBMKLCI daily chart as at May 13, 2019 (Source: Malaysiastock.biz)

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