Taking a deeper look into the technical levels of Vanguard S&P 500 Index ETF Hong Kong (3140.HK), we can see that the Williams Percent Range or 14 day Williams %R now sits at -100.00.
Although the news may have caused an initial sell-off, traders look a little reluctant to press the stock market further lower because some feel that the move could be part of Trump's negotiation tactics and that the tariffs won't officially be implemented until a public comment process is concluded. Moving averages are a popular trading tool among investors. A reading under 20 would indicate no trend, and a reading from 20-25 would suggest that there is no clear trend signal. A reading from -80 to -100 would signal an oversold situation.
Currently, the 14-day ADX for Vanguard S&P 500 Index ETF Hong Kong (3140.HK) is sitting at 21.54. S&P Smallcap Utilities PS (PSCU)'s Williams Percent Range or 14 day Williams %R now sits at -45.10. The Williams %R was developed by Larry Williams. ADX is used to gauge trend strength but not trend direction. The ADX is typically plotted along with two other directional movement indicator lines, the Plus Directional Indicator (+DI) and Minus Directional Indicator (-DI). This is a momentum indicator that is the inverse of the Fast Stochastic Oscillator. Moving averages can be used to help filter out the day to day noise created by other factors. Finding confidence to make trades in down market environments may make the difference between a good portfolio and a great portfolio.
If the early price action is any indication, traders face a mountain of volatility on Friday. But the S&P 500's .SPX recent volatility has left the index trading down 7 percent from its record high on Jan 26, and most of its components have fallen even further from their own recent highs as investors worry about high valuations and likely interest rate hikes.