Summary: 

• Trump to announce tariff decision at 3:30 PM ET
• Levies are expected to be placed on steel and aluminium 
• US500 rises to highest level of the month

The much discussed trade tariffs form the US are expected to be formalised later on this evening with President Trump scheduled to make an announcement at 3:30 PM ET. The decision itself appears to have been already taken with a unconfirmed reports suggesting that it will be a 25% levy on Steel imports and 10% on Aluminium.

 European indices have enjoyed a strong day of gains. Will the US follow after the European cash close? Source: xStation

News that Gary Cohn has resigned on what was an apparent disagreement over this policy earlier this week tested the markets mettle, but the reaction has been strong with the dip being firmly bought. 

It seems like the US500 isn’t too fussed about this with the benchmark today moving up to its highest level of the month. However the market has failed to break what could be a key swing resistance around 2738 and until it does, the upside is limited.   

 The US500 is tested prior resistance around 2738. A break above here could trigger an inverse S-H-S setup. Source: xStation

The 2738 level could be seen as a possible neckline in an inverse head and shoulders setup. A clean break above it would obviously be a positive development and the projected target of 2827 would see price return not far form its all-time highs should it be reached.