Indices fall on tariff threats: Buying opportunity DAX, S&P 500? [Video]

In today’s Market Outlook, let’s take a look at Forex Trading on Silver, XAGUSD, the FTSE 100, the NASDAQ, the DAX, and the S&P 500.

Last time, we spotted a buy-the-dip opportunity on the US indices and look what happened.

However, we now see a lot of downward pressure, so should we buy the dip again?

Getting back to the S&P 500, the NASDAQ and, in fact, almost all global indices fell.  Why?

This last week was earnings week, and it went well for many except Amazon.

3 big problems occurred though with Jerome Powell not being confident on lowering interest rates right away, the White House has sent letters to all US Pharma companies demanding price drops within 60 days, and President Donald Trump has threatened more punishing tariffs across the board.

If we want to go long on indices or short on USD, we need to see one of the following:

Trump changing his mind on the tariffs, also known as a TACO trade.

Any mention by Trump or Scott Bessent indicating Christofer Waller as the next Fed chair.

Waller wants the job and is promising to lower interest rates to get the job.

Lower US interest rates will strengthen the indices and weaken the USD.

And thirdly, any retraction of the threats against the US pharmaceutical industry companies.

Check all the global indices, and you will see very similar price action.

Here we see the NASDAQ.

And, we see this price action gap on the DAX and a very oversold stochastic oscillator.

Also, we see an ascending triangle on the FTSE 100.

But, this evening we have the US Non-Farm payrolls, which will tell the Fed a lot about the economy.

Price action on Silver XAGUSD has reached the lower trend line in this bull run, and the stochastic oscillator is quite oversold and looking at turning up.