Rare Earth Elements are the newest player in the ongoing U.S.-China trade war. According to some sources, China is seriously considering restricting exports of those metals to the US. We do not know if that is the true or even if it will happen, but it adds more risk to the market, especially stocks and oil.
As expected, Crude moved lower and tested the mid-term horizontal support for the second time. The price created a wedge and later broked the lower line of this pattern. The second test of the 58 USD/bbl support was positive for buyers as they managed to bounce from it. As for now, it is too early for the buy signal but it will be triggered when the price breaks the neckline of the double bottom formation on the 59.6 bbl/USD.
This week is so far very bad for the S&P 500, which is currently on the lowest levels since the 11th of March. The price broke two dynamic supports and a horizontal one. Today, we are aiming to test those as a closest resistance but as long as we are below, the sell signal is ON.
The last instrument is the AUD/JPY, where Thursday brings us the breakout from the small symmetric triangle pattern. From the technical point of view, that is pretty straight forward - the breakout is to the upside so it brings us the buy signal.