US President Donald Trump not only declares trade war against China, but also against Europe. Trade war, when countries attack each other’s trade with tariff and quotas not only attack other countries economically, but also rising political tension between them.
When big economies at wars, emerging markets bleed even more including Indonesian market. JCI has fallen since I predicted in my May 30 article “Asian Markets are Bleeding and Interest Rate Hike Haunts JCI”. The sell signal even getting stronger when JCI made fake breakout at June 7.
Technically, momentum of JCI is downtrend and 5700s support level must hold, otherwise 5000 will be the next target. For situation like this, cash is king!